On November 20, Xiao Gang, Chairman of the China Securities Regulatory Commission (CSRC), stated that the State Council will push for the implementation of a registration system similar to the one in the United States to be initiated as early as March 2016.
Currently, after they pass the review of CSRC’s Public Offering Review Committee (PORC) and complete post-review procedures, the CSRC approves all Initial Public Offering (IPO) applications of companies wishing to list their equities on the stock exchanges. Xiao Gang stated that the current approval-based system has brought about inflated financials with understated risks, excessive fund raising during the IPOs, high issuance prices, and the corruption of security officials.
According to Xiao Gang, the upcoming registration system will be similar to the U.S. SEC registration required for IPOs. CSRC will review whether the prospective issuer has provided full disclosure of its financials and risks. The issuer will determine that the IPO share prices are based on the market. The registration system will also provide a mechanism for companies to delist from the stock exchange if they wish.
Source: Finance (Jing Rong Wang), November 22, 2015 http://stock.jrj.com.cn/ipo/2015/11/22153420113134.shtml