CHINA is expected to announce more provisional regulations to improve its fledging securities markets following Monday's publication of the Tentative Rules on the Issuance and Administration of Stocks. Sources in Beijing said a set of temporary regulations on the operation of stock exchanges would be drafted to cover the Shanghai and Shenzhen exchanges, which are now governed by their own respective rules. Other temporary regulations for B shares and overseas listings of mainland enterprises, known as H shares or I shares, are expected to follow. These detailed regulations will supplement the Securities Law, which is being drafted by a group of experts and is expected to be promulgated by the Chinese parliament by the end of the year. Speaking in Beijing yesterday, Professor Cao Fengqi, a Beijing University economist who is involved in the drafting of the Securities Law, confirmed that the just-announced tentative regulations did not deal with B shares reserved for foreign investors. He said Clause 46 of the tentative rules, which says that any individual cannot hold more than 0.5 per cent of the total shares ''issued outside'', simply meant ''outstanding common shares'', not shares issued outside the country. According to the tentative rules, the Securities Commission under the State Council will be the country's highest administrative body for securities while the China Securities Regulatory Commission will be its enforcement organ, responsible for supervision and management of stock listing and trading. The rules further provide that mainland enterprises seeking listings should be approved by relevant government departments, the State Council Securities Commission and the China Securities Regulatory Commission. Those seeking overseas listings should be approved by the State Council Securities Commission. Professor Cao said the Securities Law would propose to simplify the administrative structure by setting up a single supervisory body to oversee the country's securities markets. The Securities Law would also try to curtail government departmental power in approving the listing of enterprises. ''Excessive government control on the listing of enterprises would cause undesirable problems,'' Professor Cao said. He said a single regulatory authority should be responsible for the approval of listings, because different government departments tended to adopt different standards. ''As long as the enterprise concerned meet the listing requirement, there is no point in other government departments interfering,'' he said. The set of tentative rules published on Monday is believed to have been prompted by the government's concern that the riots which broke out in Shenzhen last August could be repeated this year when about five billion yuan (about HK$1.36 billion at official rates) worth of stocks are to be issued. Provinces, autonomous regions and municipalities directly under the central government are allowed to select some of their enterprises for listing in Shenzhen or Shanghai. There are about 5,000 share-issuing companies in China now but only about 75 of them are listed on the exchanges in Shanghai and Shenzhen. The tentative regulations for the first time introduce a nationwide standard for the fledgling securities markets.