China to unveil plans for registration-based IPO system as early as next week: sources

DEC 4, 20154:22 PM

[SHANGHAI] China is ready to announce plans for its migration to a US-style registration system for initial public offerings (IPOs) as early as next week, two sources with direct knowledge told Reuters on Friday.

The China Securities Regulatory Commission (CSRC) began speaking of moving away from its current approval-based system - seen as distorting the IPO market and encouraging official corruption - to a registration system, where the market decides who gets to list and for how much, since early in 2014.

But the stock market crash this summer, blamed in part on an IPO glut hitting the market, put that process on hold as the CSRC froze new listings to stabilise a market that lost as much as 40 per cent in just a few weeks.

The CSRC did not immediately respond to calls requesting comment.

The sources did not give details on what the new policies would be. Local media has said there are multiple plans being considered.

REUTERS