The China Securities Regulatory Commission is soliciting public opinions on IPO reform. Nobody doubts the resolve of the watchdog agency under the stewardship of its proactive Chairman, Xiao Gang, to address an issue that has for so long frustrated and confounded investors and tarred the image of stock market players, including investment banks and stock brokerages.

Because of investors' mistrust, IPOs are widely seen as a means for greedy company owners to rob the market of funds for private gains rather than the benefit of shareholders. For that reason, investors have been calling for an indefinite extension of the unofficial moratorium on IPOs, which has lasted for nearly a year. They fear that ending the moratorium and allowing IPOs will further drain liquidity from the moribund market which, despite the latest spurts of energy, has remained one of the worst performers in the world.

In the past several months, there have been occasional rumors about the reopening of the IPO floodgates, and every time such a rumor emerges share prices tumble as investors dive for cover, as the fear of IPOs has taken such a strong hold on them.