China's top securities regulator said Sunday it will press ahead with stock listing reform in an active, steady and orderly way after lawmakers approved the changes.
The National People's Congress Standing Committee authorized adjusting the securities law to allow the listing system to be changed from approval-based to registration-based. The decision will take effect from March 1.
The move provided legal basis for the reform to help the capital market better serve the real economy, said the China Securities Regulatory Commission (CSRC) in a statement.
The change is not just simple delegation of power but a fundamental switch of regulatory method, said the CSRC.
It promised to enhance oversight on information disclosure of listed companies, crack down upon fraudulence and better protect investors' rights.
Under the current system, new shares are subject to approval by the CSRC, which controls both the timing and pricing. A registration-based system will give the market a bigger say and help ease the financing difficulty of businesses.
