China’s top legislature approved changes to the nation’s Securities Law, as it eased up listing rules and stiffened penalties for violations in the country’s $21 trillion capital markets, reported Bloomberg.
According to decisions made by the National People’s Congress Standing Committee, the revisions are effective from 1 March 2020.
Policy makers initiated a plan to have market participants play a greater role in initial public offerings as early as six years ago in order to move away from the securities regulator acting as the gatekeeper for all offerings and their pricing.
The proposal for registration-based listings, thrown off course by China’s stock market rout in 2015, materialised this year through a new trading venue targeting technology firms in Shanghai.
The head of the country’s securities regulator said in November 2019 the reform would be extended to Shenzhen’s ChiNext board.