CSRC to boost IPO re­form plan

Reg­u­la­tors will ‘strictly’ im­ple­ment delist­ing for un­der­per­form­ing firms

China Daily (Hong Kong) - - BUSINESS - By CAI XIAO caix­iao@chi­nadaily.com.cn

The China Se­cu­ri­ties Reg­u­la­tory Com­mis­sion will launch a sup­port sys­tem for the na­tion’s IPO re­form plan and strictly im­ple­ment a delist­ing sys­tem, the com­mis­sion said on Fri­day.

The IPO re­form plan, which was re­leased on Nov 30, was widely wel­comed by the mar­ket, and the CSRC is quick­en­ing the pace of the launch of a sup­port sys­tem.

“For in­stance, the Mea­sures for the Ad­min­is­tra­tion of Se­cu­ri­ties Is­suance and Un­der­writ­ing, the IPO Pre­an­nounce­ment Sys­tem, and guid­ance on in­for­ma­tion dis­clo­sure will be re­leased soon af­ter go­ing through re­lated leg­isla­tive pro­cesses,” said Deng Ge, a CSRC spokesman.

“The IPO re­form plan and the sup­port sys­tem will give se­cu­ri­ties firms more de­ci­sion­mak­ing power and cre­ate an in­ter­nal check- and- bal­ance sys­tem,” said a banker, who wished to re­main anony­mous, at a ma­jor global in­vest­ment bank.

The coun­try’s se­cu­ri­ties reg­u­la­tor said it will also im­prove

Mar­ke­ti­za­tion, leg­is­la­tion and nor­mal­iza­tion will al­ways be the di­rec­tions of the delist­ing sys­tem re­form...” DENG GE SPOKESMAN OF CHINA SE­CU­RI­TIES REG­U­LA­TORY COM­MIS­SION

the delist­ing in­for­ma­tion dis­clo­sure process by in­creas­ing the fre­quency of dis­clo­sures, per­fect­ing the con­tent of dis­clo­sures and en­hanc­ing su­per­vi­sion to fully re­veal risks for in­vestors.

A time pe­riod will be set for in­vestors to con­sider whether to sell shares or hold them in com­pa­nies that will be delisted.

Shares of delisted com­pa­nies may be trans­ferred to the Na­tional Eq­ui­ties Ex­change and Quo­ta­tions board — the so- called “third board”, an eq­uity ex­change sys­tem for small and medium- sized en­ter­prises.

Delisted com­pa­nies may ap­ply for list­ing again if they meet the re­quire­ments of stock ex­changes by im­prov­ing busi­ness man­age­ment or also via M&A deals.

“Mar­ke­ti­za­tion, leg­is­la­tion and nor­mal­iza­tion will al­ways be the di­rec­tions of the delist­ing sys­tem re­form, and the CSRC will strictly im­ple­ment the delist­ing sys­tem to per­fect the re­source al­lo­ca­tion ef­fi­ciency of the Chi­nese cap­i­tal mar­ket,” said Deng.

The spokesman said the com­mis­sion will pro­mote vol­un­tary delist­ings of com­pa­nies that have the pos­si­bil­ity of go­ing pri­vate.

“We will pay more at­ten­tion to the Na­tional Eq­ui­ties Ex­change and Quo­ta­tions board af­ter hear­ing the news be­cause there may be a pos­si­bil­ity that com­pa­nies listed on the “third board” will be listed in the fu­ture in the Shang­hai or Shen­zhen stock ex­changes,” the banker said.

The CSRC is also pro­mot­ing a move to boost cash-div­i­dend pay­ments for State-owned listed com­pa­nies. The com­mis­sion is work­ing with the Sta­te­owned as­sets ad­min­is­tra­tion depart­ment to turn the mar­ket value and cash-div­i­dend pay­ments of State-owned com­pa­nies into in­di­ca­tors of their per­for­mance.

LU QIJIAN / FOR CHINA DAILY

Two men watch the stock mar­ket at a bro­ker’s of­fice in Fuyang, An­hui prov­ince on Fri­day. The IPO re­form plan, which was re­leased on Nov 30, was widely wel­comed by the mar­ket.

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.