China to ensure quality, normalization of IPOs

Source: Xinhua| 2017-07-26 17:05:56|Editor: Yurou Liang
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BEIJING, July 26 (Xinhua) -- China's securities regulator will make more efforts to ensure the quality of initial public offerings (IPOs) and maintain the trend of IPO normalization, an official statement said Wednesday.

The China Securities Regulatory Commission (CSRC) will "raise its supervising capability and make the capital market better serve the real economy," according to the statement issued after a meeting on market supervision from Monday to Tuesday.

Since an IPO suspension between July and November 2015, China has sought to normalize IPOs by giving approvals at a faster pace to raise companies' financing efficiency and direct more money into the real economy.

Meanwhile, the CSRC has become harsher with IPO applicants to raise the quality of listed companies.

By Friday, 252 companies had been approved to go public this year, but applications from 25 companies were rejected in the same period, up from 18 rejected in the full year of 2016, according to Securities Daily.

"The commission will put preventing and defusing systemic financial risks in a more important position to ensure capital market stability, and make proper planning for the development strategy and reform of the capital market from short to long term," the statement said.

The CSRC will regulate and expand channels for capital to enter the market and promote the growth of long-term institutional investors.

It will also open up the capital market more widely and raise the quality of opening up, according to the statement.