A draft amendment to the Securities Law would add a new section on the coming Nasdaq-style high-tech board and its trial registration-based initial public offering mechanism, laying the legal groundwork for the new system.
A new chapter to the law would include special provisions on stock-issuance conditions, registration procedures and supervision of the new trading board, according to the official Xinhua News Agency
Companies listing on the new board, to be launched on the Shanghai Stock Exchange, will simply register their offerings, shifting away from the lengthy administrative approval procedure applied on China’s other boards. But the changes will require adjustments to China’s current laws and regulations, analysts said.
The draft revision to the Securities Law is under a third reading at the ongoing session of the Standing Committee of the National People's Congress, China's top legislature. The last reading of revisions to the Securities Law was in 2017.