(Yicai Global) Feb. 28 -- Shanghai bourse's much-anticipated science and technology innovation board will entail streamlined policies in terms of registration, issuing of shares, information disclosure, trading, and delisting, according to the new head of the country's main securities regulator.
The sci-tech innovation board's purpose is to enhance the inclusiveness of the capital market and support the real economy, Yi Huiman, who was appointed as the chairman of the China Securities Regulatory Commission a month ago, said in his first press conference yesterday.
The new market will serve leading companies with key technologies, good outlook and reputation, Yi added. Last November, President Xi Jinping revealed the plans to introduce the new board and it is expected to launch in the first half of this year.
Reforms will extend beyond the new source for funding. China needs to expand various types of equity financing channels, which includes bonds and futures, in order to build a standardized, fair, efficient and transparent multi-level capital market, Yi said.
Besides the Main Board and the Small and Medium Enterprises Board, this multi-layered system involves Shenzhen's Growth Enterprise Market, and the over-the-counter system of the National Equities Exchange and Quotations, Yi said, adding that the CSRC will promote reforms in the GEM and the NEEQ.
China must deepen collaboration between different sectors and break through bottlenecks that institutional investors such as social security funds and insurers face, in order to attract more medium and long-term funds into the capital markets, Yi added.
The CSRC must prevent and remove risks found in various local trading venues and private equity funds, as well as in key areas of stock-pledging and bond defaults, Yi said. The regulator will overhaul the nation's securities law, as well as significantly increase the size of fines.
Editor: Emmi Laine