Expert: Financial opening-up, reforms to move forward despite trade war
By Wang Jiamei in Shanghai and Shen Weiduo in Beijing
Chinese securities regulators launched on Thursday a
NASDAQ-style sci-tech innovation board, a breakthrough that experts said is
aimed at promoting the country's technological power and supporting efforts by
domestic companies in research and innovation amid the US suppression of
China's technological development.
The timely launch also highlights China's resolve to
further develop and invest in core technologies - a sign that its technological
strength will not be shaken by the ongoing US-China trade war, expert noted.
The new board is known by its English name - STAR Market
- in the hope that it will become a rising star in the country's financial
markets. The STAR Market will try a registration-based IPO system and will
allow companies that have yet to make a profit to get listed, as in the case of
NASDAQ.
To show the importance the central government attaches to
the new tech board, Vice Premier Liu He attended the launch on Thursday morning
at the Lujiazui Forum in Shanghai, with Yi Huiman, chairman of the China
Securities Regulatory Commission (CSRC), Secretary of the Shanghai Municipal
Committee of the Communist Party of China Li Qiang and Shanghai Mayor Ying
Yong.
In his keynote speech, Liu stressed that the two
priorities for the new board are registration-based IPO reform, with
information disclosure at its center, and enhancing the rule of law by raising
penalties for violations and strengthening supervision and law enforcement.
Yi cited two reasons for the launch of the STAR Market
and the piloted registration-based listing system.
The first is to support the development and growth of
science and technology companies with development potential and high market
acceptance. The second is to use the board as a test for reforms. The
securities regulator will implement pilot reforms in issuance and listing,
sponsorship underwriting, market-based pricing, trading and delisting, and will
pass on the experience to other boards.
Yi also announced plans for a series of reforms,
including revisions to Qualified Foreign Institutional Investors (QFII) and
Renminbi Qualified Foreign Institutional Investors (RQFII) rules, opening-up of
the futures market, opening-up of the exchange bond market, and the issuance of
yuan-denominated bonds, namely "panda bonds" by overseas
institutions. Huang Hongyuan, chairman of the Shanghai Stock Exchange, told the
forum on Thursday that so far, 122 companies have applied for listing on the
board, which is expected to see the first batch of companies in the next two
months.
Observers have stressed many times that China will not
slow down on development and opening-up amid the trade war.
"It's time to further open China's capital market,
and the opening-up will be made notwithstanding a trade war with the US,"
said Dong Dengxin, director of the Finance and Securities Institute at Wuhan
University of Science and Technology.
"The new board also marks an important move for the
country's capital market, as the establishment of some rules such as IPO
standards and reviews are based on the NASDAQ," Dong said.
Because the new board was established to rival the
NASDAQ, once the domestic firms' listing requirements are fulfilled, it will
also welcome more foreign participation in the future, which is in line with
the country's financial opening-up efforts, Dong said.
Vice Premier Liu He (second from left) attends the launch
of the science and technology innovation exchange on Thursday in Shanghai,
which kicked off the country's much-anticipated capital market reform this
year, with Yi Huiman (far left), chairman of the China Securities Regulatory
Commission, Secretary of the Shanghai Municipal Committee of the Communist
Party of China Li Qiang (second from right) and Shanghai Mayor Ying Yong. Photo from CFP
Source:Global Times
Expert: Financial opening-up, reforms to move forward despite trade war
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