BEIJING (Reuters) – China’s securities regulator said on Friday that it plans to make it simpler for companies to issue shares.
Deng Ge, a representative of the China Securities Regulatory Commission (CSRC), also told a Beijing press conference it would stiffen a crackdown on stock market manipulation.
Reforming mechanism for issuing shares, especially for initial public offerings, and bringing rule and order to a stock market some liken to a casino is crucial to Beijing’s efforts to develop its capital markets.
CSRC said that simplifying share-issuing procedures is aimed at meeting the demands of market participants and making it easier for companies to issue shares.
The watchdog said it would fast-track approval for issuance of preference shares, let companies decide the proportion of shares it plans to sell publicly during IPOs and allow issuers to independently determine the number of its underwriters.
It will also “vigorously reform” the approval process for Chinese firms listing overseas, Deng said.
The CSRC said it would crack down more vigorously on the practice of manipulating several stocks by several parties in a concerted manner.
On Friday, China’s main stock indexes hit seven-year highs.
(Reporting by Zhang Xiaochong and Pete Sweeney; Editing by Sunil Nair and Richard Borsuk)