Chinese securities market's pilot of registration-based initial public offerings system is a good attempt and will benefit A-share markets in the coming days, Henry Huang, professor with Sy Syms School of Business, Yeshiva University, said on Saturday.
China Securities Regulatory Commission, the top securities regulator, on Friday issued the regulations on the science and technology innovation board, which will pilot registration-based IPO system.
Huang believes that the implementation of the pilot registration system for listed companies is an encouraging step made by China's capital market and it opened a window for A-share markets to adopt the system in the future.
"If the sci-tech companies grow and expand in the sci-tech innovation board, maybe they will get listed in the A-share markets later to attract more qualified investors, which makes the sci-tech innovation board an incubator of quality enterprises," said Huang.
But he argues that the requirements for qualified investors in the sci-tech innovation board somehow have limited investment activities of individual investors. "I think the restrictions should be loosened in the future so all investors will enjoy the opportunities to invest in quality enterprises," said Huang.
Chinese securities regulator further improved the delisting system last year as a major reform endeavor for the capital market. "I believe it is headed in the right direction," added Huang.
