Registration-based IPO mechanism an upcoming focus, official says

Efforts are being made to adopt the registration-based initial public offering mechanism throughout the A-share market, according to Yi Huiman, chairman of the China Securities Regulatory Commission. Yi made the remarks in an interview with Xinhua News Agency on Thursday.

The complete adoption of the registration-based IPO mechanism will be a focus of the CSRC in 2022 as the country's top securities watchdog aims to make more reform and progress next year, he said.

China will also step up regulation of fundraising as well as mergers and acquisitions in some sensitive areas, Yi said. The CSRC will team up with industry supervisory bodies to set up a mechanism to effectively control the negative impact of capital.

Efforts will also be made next year to steadily resolve risks in key areas. Risks related to bond defaults should be solved steadily. By working with related parties, key cases regarding bond defaults will be handled specially to eliminate spillover effects. Responsibilities of issuers and intermediaries should be further strengthened so bond defaults will be handled legally while conforming with market rules, Yi said.

By keeping a close eye on emerging risks or financial disorder, the CSRC will cooperate with other departments and local governments to crack down on fake private equities or fake wealth management service providers, he said.