China’s securities regulator unveiled a package of measures to boost ‘vitality, efficiency and appeal’ of stock market in response to Politburo meeting.
Stablizing the stock market was a priority and “without a relatively stable market environment, there’s no basis for reviving the market and lifting sentiment,” the China Securities Regulatory Commission (CSRC) said.
The CSRC will boost the development of equity funds by speeding up the registration of index funds and broadening funds’ access to derivatives, and encourage fund managers to make countercyclical investments.
Listed companies will be encouraged to buy back shares, and offer investors steady streams of dividend payouts and the CSRC will also study measures to restrict financing activities by companies and sectors whose shares trade below net asset value or initial public offering prices.
It also vowed to keep “balanced” development between the primary and secondary markets, by keeping up a “rational” pace of IPOs.
In addition, the CSRC will continue to clear the channels for companies to list overseas and introduce more “green light” cases, including VIE structure companies and platform companies.
It will promote the formation of a more transparent, efficient and smooth regulatory coordination mechanism for overseas listings, respect companies’ free choice of overseas listing venues in compliance with laws and regulations, and support qualified companies to utilize the two markets and two types of resources to achieve healthy development.