China securities watchdog to finalise draft rules for stock listings this yr
SHANGHAI, March 6
SHANGHAI, March 6 (Reuters) - China's securities regulator will finalise draft rules for IPO listings this year that will impose robust disclosure requirements for companies, though the rules will become effective only when market conditions are appropriate, local media reported on Thursday.
Under the proposed registration-based system, applicants would be required to fully disclose information related to earnings and operations with investors deciding their market worth.
Xiao Gang, chairman of the China Securities Regulatory Commission (CSRC), was quoted the Shanghai Securities News as saying that implementation of the registration-based share offering system will safeguard investors' interest.
Chinese laws currently require companies planning listings to get approval from the CSRC, which will also guide their offering price measured by the respective price-to-earnings (PE) ratios.
The new system may be introduced in 2015, following the amendment to the Securities Act, Xiao told reporters on the sidelines of the annual parliament sessions in Beijing.
Xiao also said there was no timeframe set for the launch of the T+0 trading model, which would allow financial products to be bought and sold on the same day, as it would lead to excessive speculation.
Currently, investors can only sell their shares a day after it was bought.
China resumed initial public offerings (IPOs) in January after a 14-month suspension, with 45 firms floating shares and raising a combined 32.1 billion yuan ($5.3 billion) in the month.
To support the resumption, the CSRC launched a slew of reforms in November but has been forced to pull back some and add new restrictions to curb irregularities, prompting a dozen firms to postpone their IPOs. Some later re-launched the IPOs after making adjustments.
(Reporting by Fayen Wong and Chen Yixin; Editing by Shri Navaratnam)
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