The China Securities Regulatory Commission (CSRC), China’s top securities regulator, recently said in a statement that the reform of IPO stocks will not focus on replacing the current verification system with the registration system.
“It is not the core problem whether to adopt the verification system or the registration system,” the CSRC said in the statement, in response to the question whether will the verification system be replaced by the registration system after the reform of IPO stocks?
The key, as the CSRC pointed out, is how to define the duties and obligations of the government regulatory agencies, the exchange platform and other market intermediaries and how to ensure enterprises to disclose relevant information completely and accurately.
“The censorship in some markets implementing registration system is stricter and more careful than that of China,” said the CSRC.
In order to improve the pricing mechanism and inhibit the phenomena of “three highs” and hype of IPO stocks in the stock market, the CSRC has recently laid the emphasis on enhancing pricing constrains of buyers, increasing the pricing responsibility of underwriters, improving stock liquidity and strengthening the supervision of pricing behaviors.
Author: Li Zhenyu
Source: People’s Daily Online