Photo: Xinhua

China's top legislature approved on Saturday the revised Securities Law, setting the legal basis for registration-based IPO reform. 

The law is set to take effect on March 1, 2020.  

Addressing a press conference on Saturday under the aegis of the Standing Committee of NPC, Cheng Hehong, the head of the legal department of China Securities Regulatory Commission, said one of the most important revisions of the law is implementing the registration-based IPO system. 

Cheng further explained as per the new inclusions the requirement for companies seeking to be enlisted has been changed from "being capable of continuous profitability" to "continuous operation." One chapter has been completely dedicated to information disclosure requirements. 

The draft is seen as a crucial step toward the marketization and legalization of the Chinese capital market.

The revised law has 14 chapters, with additional chapters on information disclosure and protection to shareholders.


Global Times