In the News: China Reforms IPO Process; Australian Court Enforces Chinese Arbitral Award; and Chinese Bond Market Changes

February 07, 2023 | BY

Brian Chan

China's IPO reform expands the registration-based system to main boards; Australian court refuses to deny Chinese arbitral award on public policy grounds; and China allows 12 market makers in the bond market to boost liquidity.

Promulgated: 2023-02-01

China Reforms Its IPO Process by Giving Stock Exchanges Vetting Power

According to a Reuters report, the China Securities Regulatory Commission (CSRC) has announced reforms to expand the registration-based system for initial public offerings to the main boards in Shanghai and Shenzhen. The registration model is from the U.S. and was first adopted by Shanghai's STAR Market—a tech-focused board launched in 2019. It gives stock exchanges the power to vet IPOs with full information disclosure from companies. Currently, the CSRC is responsible for approving listing candidates and the IPO price is capped by the regulator.

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