The Reform of China's Capital Markets in 2023 and Outlook in 2024

Summary

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• In the first part of 2023, a full-scale, registration-based reform of China's IPO system reform took place, and this was consolidated later in the year
• There is now a clear delineation of responsibilities among China's various exchanges
• The core regulatory logic has also been transformed, with a shift to putting information disclosure at the core, with market participants given decision-making power
• Later in the year, a series of measures were introduced in an effort to boost the domestic capital markets, there was a focus on domestic companies seeking

In the recently concluded year of 2023, China's capital market underwent a transformative period marked by significant reforms. The comprehensive overhaul of the A-share market through the initiation of a full-scale, registration-based, IPO system reform in the first half of the year, coupled with the establishment of the filing system for domestic companies' overseas securities offering and listing, and culminating in the year-end revision of the PRC Company Law by China's legislative authorities, collectively epitomized a profound transformation of the foundational institutions that underlie China's capital market. These systemic changes exert a far-reaching influence on all participants within the Chinese capital market, and bear epochal significance in the developmental trajectory of China's capital market.

The A-share Market in 2023