COMPREHENSIVE IMPLEMENTATION of the across-the-board, registration-based listing mechanism is overarching reform with far-reaching implications, leaving an indelible imprint on the development of China’s capital markets.
The success of the universal registration-based system relies on the diligent performance of market players, while rigorous enforcement of the delisting regime for listed companies, and the improvement of due diligence standards of intermediaries, pose new challenges for the industry.
Despite turbulence in domestic and overseas markets, the “going global” enthusiasm of enterprises has not subsided as China’s capital market reform picks up steam. The first batch of enterprises has successfully navigated the implementation of new regulations for overseas listing, but the regulatory authorities’ reviewing preference – along with other challenges ahead – still need to be further evaluated, and continue to be clarified in practice for a clearer path that markets so eagerly await.
Full-on implementation of the registration-based mechanism is welcomed for unifying rules across the main boards, the Star Market and ChiNext board, says Zhang Zhengyi, a partner at Llinks Law Offices in Shanghai.
