China formally starts across-the-board registration-based IPO reform

BEIJING - The China Securities Regulatory Commission (CSRC) started soliciting public feedback on the main rules of the across-the-board registration-based initial public offerings (IPOs) on Wednesday, officially kicking off the across-the-board reform.

The reform, with institutional arrangement basically fixed, will cover all national securities exchanges and all types of public offerings of stocks, as well as preferred stock, convertible corporate bonds and depositary receipts, said the CSRC.

The CSRC noted that the reform will optimize registration procedures, unify registration systems nationwide and fine-tune the supervision mechanism.

The essence of the registration-based reform is to leave the choice to the market, said the CSRC, adding that the review process is transparent and social supervision is accepted.

China first piloted the registration-based IPO system on the science and technology innovation board in 2019, and expanded it to the ChiNext board in 2020 and to shares on the Beijing Stock Exchange in 2021.