The CSRC, China's security regulatory body, is pushing forward China's stock market reform by moving from an approval-based IPO system to a registration-based system.
China's two major stock exchanges, the Shenzhen Stock Exchange and the Shanghai Stock Exchange are now preparing for the move. Under the new system, China's security regulatory body will delegate the examine-and-verify power to the two bourses, where firms register their IPOs and face a rigorous audit before listing.
Companies seeking IPOs will only need to file records with the regulatory body. The reform is expected to shorten China's initial public offering vetting process.
Analysts say the new rule will also help to boost China's start-ups and SMEs, as it will loosen market control and allow the market to measure the true value of new stocks.