SHANGHAI : China's securities watchdog has implemented new IPO rules that it hopes will encourage new listings and boost corporate fundraising, while protecting information disclosure and transparency as Beijing seeks to revive a COVID-ravaged economy.
The new IPO system was first adopted by the tech-focused STAR Market and later rolled out to start-up board ChiNext and the Beijing Stock Exchange. It will now be expanded to the main boards in Shanghai and Shenzhen, homes to many Chinese blue chips. Key to the changes is the so-called registration system, which replaces the previous approval-based IPO system for the main boards in the Shanghai and Shenzhen stock markets, under which companies had to go through strict vetting process by the CSRC.