The Securities Regulatory Commission of the China said on Wednesday that it is looking to change its system for initial offerings of actions (IPOs) in order to facilitate access by local companies.
The registry-based system to be adopted would be a major departure from its current approach, which requires most companies go through rounds of regulatory reviews and approvals before they can sell shares to the public.
The registration system means that the regulator will only check the completeness of the companies’ disclosures and any major compliance or legal issues, which should result in a faster pre-listing process.
It also means that most of the verification work would be done by the country’s stock exchanges.
Source: Moneytimes
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