CHINA-NPC/ECONOMY
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Li Chao, Vice Chairman of the China Securities Regulatory Commission, informed the CPPCC on March 8, 2016, that China is still “researching and discussing” the registration-based initial public offering system. He explained to reporters on the sidelines of the CPPCC session that implementation of the system is a complex process because the market is very sensitive to the issue. Meanwhile, the NPC has granted a two-year window starting from March 1 for the country’s top securities regulator to revamp the IPO system to make it easier for companies to go public. Chinese Premier Li Keqiang made no mention of it in his annual work report, which he delivered at the opening of the annual session of the National People’s Congress on March 5, 2016, though he had mentioned the registration system in his 2014 and 2015 work reports.
(Comment: China’s stocks plummeted in late February amid worries that the registration-based IPO system would be brought into effect soon and lead to an excessive number of new listings. Analysts said the plan to liberalize the IPO system is unlikely to be implemented this year.)
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