(Yicai Global) Oct. 22 -- China’s securities regulator isstudying a plan to expanditsreforms of the country’s initial public offering systemto allChinese mainland stock markets, according to its vice chairman.
The conditions to extend the so-called registration-based IPO system to all bourses have now been created through its successful introduction on Shanghai’s Star market and Shenzhen’s ChiNext board,Li Chaotold the annual conference of the Financial Street Forum today.
The ChiNext adopted the system on June 15 after the new Star Market began trials in March last year. All 183 companies traded on Shanghai’s sci-tech board listed using the system. Thirty-eight have used that route to join the ChiNext so far.
TheChina Securities Regulatory Commission will pursue market-oriented and law-based reform and proceed step by step to bring about the change,Lisaid. It will prepare well, summarize the pilot experience, note the experience and advice of all parties, and improve the registration-based system’s framework in line with national conditions, he said.
The watchdog will also set up a regulatory system conducive to implementing the system, accelerating the transformation of regulatory functions, intensifying punishment for violations of laws and regulations, and establishing a list of rights and obligations, he added. In addition, the CSRC will take the reform as an opportunity to strengthen the system’s weak links and speed up the formation of a more mature and established underlying system.
Registration-based IPOs embody a consensus for reform, according to Li. All kinds of market entities are adapting themselves to the reform, with their market vitality constantly stimulated. And the reform practice is recognized, gradually forming an ecosystem of registration-based IPOs, which significantly enhances the concept of value investment in the market.
Editors: Xu Wei, Peter Thomas