You are here

China securities regulator says to balance equity supply and demand this year

file6u3tzee51488oqo2drw.jpg
Outside the Shenzhen Stock Exchange.The China Securities Regulatory Commission (CSRC) reiterated plans to introduce a registration-based mechanism for initial public offerings (IPOs) on the stock exchange's start-up board ChiNext this year.

[SHANGHAI] China's securities watchdog said on Friday that it would keep equity supply and demand in balance in 2020 as it pushes for further reforms in the capital markets while containing financial risks.

The China Securities Regulatory Commission (CSRC) reiterated plans to introduce a registration-based mechanism for initial public offerings (IPOs) on Shenzhen's start-up board ChiNext this year, according to a statement on the regulator's website.

The US-style IPO system is the basis of Shanghai's Nasdaq-style STAR Market, which was launched in 2019, and hailed as China's boldest capital market reform yet.

CSRC said that it would encourage the listing of companies, especially tech firms. Meanwhile, regulators will continue to promote the launch of equity funds, and expand the source of long-term capital, so as to balance fundraising and investment capital.

CSRC said it will also promote a pilot scheme for infrastructure-based real estate investment trusts (REITs), and will increase the supply of futures and options based on commodities or financial assets. 

Your feedback is important to us

Tell us what you think. Email us at btuserfeedback@sph.com.sg

REUTERS

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes