CSRC targets 100 new listings in A-share market by year-end

China's securities regulator has confirmed the pace of new share listings in 2014, and about 14 to 15 companies will go public in the A-share market every month starting in June.

The China Securities Regulatory Commission released a statement on Monday night saying that it is supporting the IPO process and working to stabilize market expectations.

The statement quoted Chairman Xiao Gang as saying that about 100 companies will go public, and in principle, the number will be the same each month.

Reactions to the statement were mixed.

"This is good news," said Li Daxiao, Beijing-based chief economist with Yingda Securities Co Ltd. "The move is a big step in the Chinese securities market, and the regulator is carrying out its work in a market-oriented way."

"The number is below expectations, and it won't have much impact on the stock market. Stocks might rally on this news," said Yang Delong, chief strategist at China Southern Fund Management Co Ltd.

"This IPO plan can be good for the stock market in the short term, but it's not good news in the long term," said Hong Hao, a managing director and chief strategist at Bocom International Holdings Co Ltd. "Investors can't make good decisions on pricing because the IPO timing for other companies in line for going public is uncertain," said Hong.

The commission is also studying ways to help Internet and high-technology companies that aren't yet profitable to go public on the Nasdaq-style ChiNext board.

Such companies must first be listed on the over-the-counter National Equities Exchange and Quotations for a year. NEEQ is China's third national equity exchange regulated by the CSRC.

As of Tuesday, 358 companies had unveiled preliminary IPO prospectuses.

After authorities ended a 14-month IPO suspension, 43 companies were listed in January and five in February. No IPOs have taken place since then, leaving about 600 companies on the waiting list.

Chinese policymakers are seeking to improve the quality of IPOs as part of broader financial reforms aimed at luring investors amid a prolonged slump in the benchmark index.

The State Council, China's cabinet, said on May 9 that it will deepen reforms to improve the nation's securities markets.

The securities commission's statement on Monday also said that the CSRC will accelerate work on rules covering privately offered funds and the requirements for designated qualified investors.

It said the CSRC will further increase the quota under the Qualified Foreign Institutional Investor program, known as QFII, that allows foreign buyers to invest in yuan-denominated A shares.

The commission will strive to ensure that crude oil futures are launched by the end of this year.