After a four-year pilot program, China has accelerated reform of the registration-based IPO system. Authorities including the China Securities Regulatory Commission (CSRC), the Shanghai Stock Exchange (SSE) and the Shenzhen Stock Exchange (SZSE) sought public comments on 39 regulations concerning the system’s implementation. Rich reform programs have been proposed, including a plan to introduce the system to the main boards of the SSE and SZSE, which has drawn the most attention.
The reform undoubtedly marks an important milestone for the development of China’s capital market. It will not end here, as the system needs continuous improvement. However, the existing results can provide experience for deepening overall reform. On the right track, reform could advance in due order. And every little bit helps. At the critical point, the country should cleave through the waves to achieve breakthroughs.
