China unveils measures for registration-based system of ChiNext

BEIJING - China has introduced a series of measures to reform ChiNext and pilot the registration-based initial public offerings (IPOs) system in the country's Nasdaq-style board of growth enterprises, according to the country's top securities regulator.

The China Securities Regulatory Commission (CSRC) said measures to regulate IPO registration on ChiNext include stricter requirements for information disclosure and legal and financial compliance.

The application review process will be open and paperless in a bid to ease enterprises' burdens and increase transparency, according to the CSRC.

The CSRC said supervision will be strengthened and issuers, intermediaries and other market entities will be held accountable for violations of laws and regulations.

In addition, the CSRC also introduced measures in the areas of share issuances, convertible corporate bonds and depositary receipts, corporate governance, equity-based incentives, holding stock reductions, as well as sponsor businesses.

The measures came into effect on Friday after the CSRC solicited public feedback.

China decided in late April this year to pilot the registration-based IPO system at ChiNext to replace its approval-based one to better cultivate new industry start-ups and bolster the real economy.