The document released by the State Council after the markets closed on Friday evening sets out nine guidelines that formulate a framework to develop the market, demanding a better mechanism for protecting investors’ interests and an improvement in the quality of listed companies over the next five years.
By 2035, the market should have achieved “a reasonable structure of investing and fundraising” in which listed companies have demonstrated a significant improvement in quality, it said. There must also be demonstrable progress in cultivating first-class investment banks and financial institutions.
“This will boost investors’ sentiment to some extent,” said Dai Ming, a fund manager at Huichen Asset Management in Shanghai. “But it’s guidelines, and what we’ll need to see going forward is how the securities regulator will implement these changes.
“From an investor’s perspective, restricting the scale of fundraising, namely new share sales, and ramping up the delisting of unqualified listed companies is what we want to see most.”
Shortly after the State Council issued the guidelines, the China Securities Regulatory Commission (CSRC) unveiled new delisting rules that will see…
