China to reform Shanghai’s Nasdaq-style Star Market, improve listing quality: CSRC
- Eight measures are introduced to reform the Star Market under the Shanghai Stock Exchange, said Wu Qing, CSRC chairman
The China Securities Regulatory Commission (CSRC) elaborated on the eight measures for overhauling the Shanghai Science and Technology Innovation Board, also known as the Star Market, under the Shanghai Stock Exchange.
These included reforms of the primary market pricing mechanism, more support for mergers and acquisitions among Star Market-listed companies and optimisation of fundraising acitivites to facilitate research and development. The watchdog will also encourage the usage of stock incentive for employees and introduce more exchange-traded funds (ETFs) as well as more derivative products like index futures and options.
His comments were in line with the steps taken by the CSRC to restore investor confidence by encouraging listed companies to increase shareholder returns and pledging to clamp down on fraudulent listings and accounting falsification.
“We’ll create favourable conditions with related departments to attract more medium and long-term capital into the capital market,” Wu said. “We’ll focus on policy support for investment and withdrawals by venture capitals and private equity funds to guide earlier and better investment in core technologies to promote the virtuous financial cycle of the tech industry.”