IPO

The Shanghai and Shenzhen stock exchanges havestarted acceptingexisting main board IPO, refinancing and restructuring applications, after China officially implemented the across-the-board registration-based IPO system on Friday that delegates more review powers to local bourses from China’s top securities regulator. As of press time, applications from 16 companies have been accepted by the two bourses.
The companies plan to raise funds totaling 20.5 billion yuan ($2.98 billion), according to data from the two bourses’ website. Those companies including oral care product firm Dencare, auto part manufacturer Sanlian Forging, which supplies for a number of vehicle makers such as BYD, Xpeng, Mercedes-Benz, BMW and Audi as well as commodity trade firm CITIC Metal.
According to the China Securities Regulatory Commission (CSRC), the transitional period to theacross-the-board registration-based IPO systemwill start from Monday and last until March 3, during which the Shanghai and Shenzhen stock exchanges will take over existing IPO applications from the CSCR and complete the review process. 
From March 4, Chinese mainland bourses will directly accept new applications for listings on the main boards, based on the new measures.
Analysts noted that by delegating the approval power to bourses, the CSRC can spend more time focusing on supervision, investigation and enforcement against illegal actions made bylisted companies, creating an open, fair and just market environment for investors. The efficiency of China’s capital market will be elevated as well. 
After receiving IPO application document, the Shanghai and Shenzhen bourses should review the document and make a decision on whether or not to accept the application within five working days. 
China piloted the registration-based IPO system on Shanghai’s Nasdaq-like STAR board in 2019, and ChiNext market of the Shenzhen bourse also embraced the new system in 2020. The Beijing Stock Exchange, established in 2021, also adopted the system. The implementation of the new system across A-share market marks a milestone in China’s wider capital market reform. 
Global Times