BEIJING, June 27 China's securities regulator
said on Friday it plans to unveil details of its new initial
public offering (IPO) system before the end of the year.
The China Securities Regulatory Commission (CSRC) said in
December it planned to dump its approval-based IPO system where
it decides which firms would get to list and when, moving to a
registration-based scheme similar to the United States and other
Zhang Xiaojun, the regulator's spokesman, told a media
conference that detailed plans for the registration-based
system, which allows for market forces to determine reception
and pricing of IPOs, would be revealed by the end of the year.
He did not elaborate.
The CSRC has so far maintained tight control over supply and
pricing. Earlier this year, it instructed firms which set their
IPO price-to-earnings ratio higher than that of industrial peers
in the secondary market to publish risk warnings before selling
shares to retail investors.
Shares of three small Chinese companies soared by over 40
percent in their debuts on Thursday in the first mainland
listings in over four months, underlining the difficulties the
CSRC faces in transforming the IPO system to a more
market-driven one while curbing speculation.
(Reporting by Zhang Xiaochong and Koh Gui Qing; Writing by
Engen Tham; Editing by Kazunori Takada)