Apparently, the planet's fastest growing economy is not immune to the realities of the marketplace. China, currently the world's industrial engine, has taken a new step towards environmental responsibility by putting rules into effect concerning the seeking of financing through the public equities market.
The country's State Environmental Protection Administration (SEPA) is forcing corporations to delay offerings of public stock until they've complied with environmental rules. Ten domestic IPOs were held back in the second half of 2007 when SEPA vetted these deals, and all but two finally made it through the process.
The idea that environmental concerns are affecting a company's ability to raise funds certainly lifts some eyebrows. China's central-plan economy disciplines with a heavy hand when corporations look to compete in the global capitalistic marketplace, but in this instance, the potential positive impact of their policies are substantial.
Though it seems to be working in China, it's probably not a step worth pursuing here in America, as many of our domestic corporations are already including new environmental guidelines into their own game plans. Part of this is due to an increasingly widespread understanding of the new rules of doing business, and any corporation worth its salt knows they should be obeyed, or run the risk of being considered obsolete. Another reason lies in the rapidly increasing demand from the consumer for products and services that offer environmentally safety and sustainability.
It's one thing for a government to assist, incentivize, and guide corporations in order to compete in the green era. It's another thing to legislate onerous, far-reaching rules that will ultimately stifle the creativity needed to make greening the world a reality.
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