Policy· Markets

CSRC to increase regulatory oversight of trading in Shanghai and Shenzhen

minutes 2019/06/11 06:39:26
China Securities Regulatory Commission; regulatory oversight

Jun 11, 2019 (China Knowledge) - The China Securities Regulatory Commission (CSRC) is tightening regulatory oversight of trading in Shanghai and Shenzhen, clearing its backlog of suspended firms and introducing new products to the market as foreign investors start to take greater interest in the country’s capital markets.

The increased oversight aims to better control arbitrary suspension of trade and long-term suspension of trade by listed companies to ensure a sound capital market that is able to drive economic growth.

In addition, the country will also launch more financial and wealth management products to meet the growing demand from foreign investors looking to gain access to its capital markets. According to Li Chao, vice-chairman of the CSRC, the CSRC will expand its pilot program for the issuance of panda bonds, pilot projects for special bonds under the Belt and Road Initiative and commodity futures options.

The CSRC will also relax trading restrictions on stock index futures and continue with its efforts to improve market operations.

The move be the CSRC comes just prior to the expected launch of the upcoming Science and Technology Innovation Board in Shanghai which aims to boost the development of the domestic tech sector.

The upcoming board will be the first board in China to feature a Nasdaq-styled registration-based IPO system and will allow unprofitable companies to list. The board will help provide tech companies with greater access to capital and will be an important catalyst for innovation.

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