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Bloomberg
China’s top legislature approved changes to the nation’s Securities Law, including formalising registration-based initial public offerings after years of reviews, as it eased listing rules and stiffened penalties for violations in the country’s $21 trillion capital markets.
The revisions are effective from March 1, according to a report from a government website citing decisions made by the National People’s Congress Standing Committee.
Policy makers initiated a plan to have market participants play a greater role in IPOs as early as six years ago in order to move away from the securities regulator acting as the gatekeeper for all offerings and their pricing. The proposal, thrown off course by China’s stock market rout in 2015, materialised this year through a new trading venue targeting technology firms in Shanghai.
The head of the country’s securities regulator said in November the reform would be extended to Shenzhen’s ChiNext board.