Regulator: IPO process smoothened, not tightened or relaxed

By taking into consideration the market capacity, liquidity and coordinated development of the primary and secondary markets, the process of initial public offerings in China has neither been tightened nor relaxed, said China Securities Regulatory Commission's Chairman Yi Huiman at the 13th Lujiazui Forum in Shanghai on Thursday.

The country's IPO process has been further streamlined in a more scientific and reasonable manner, aiming to create an IPO ecosystem in line with market expectations, said Yi.

According to the new Securities Law, which took effect in March 2020, intermediary organizations now shoulder more responsibilities. Shareholders' responsibility regarding information disclosure is has also been further stressed. As more emphasis is laid on "hard technology", companies planning to go public on the technology-focused STAR Market in Shanghai will face a more solid and comprehensive evaluation, he said.

China's top financial regulators have always been open as to companies' listing venues, said Yi. It is normal that some companies want to go public overseas while others are looking to come back after an overseas stock market debut.

"We hold a supportive attitude in general. But it should be noted that companies should abide by the local laws no matter where they are listed. Regulators all over the world should strengthen their cooperation regarding law enforcement," he said.

"The relationship between openness and security should be properly addressed. The prerequisite of a company's successful listing in an overseas market is to conform to domestic laws and supervision," added Yi.