Business / CSRC to bolster up stock market

CSRC seeks to stabilize economic growth

By Chen Jia (chinadaily.com.cn) Updated: 2012-05-28 11:20

China Securities Regulatory Commission (CSRC) plans to improve the mechanism for private companies to raise funds by issuing initial public offerings and refinancing, aiming to boost the nongovernmental business sector and stabilize economic growth.

The top regulator encouraged private companies to list overseas by lowering the threshold and simplifying approval procedures, as well as improving the relevant laws and regulations to better use foreign capital to support their development.

To enlarge the proportion of private capital in the financial sector the CSRC vowed to accelerate administrative licensing for private shareholders when increasing stakes in securities and fund management companies.

"Private funds are encouraged to invest in future companies and participate in their innovative business pilot programs," said a statement released on the CSRC website.

In addition, private capital can launch independent institutions for selling funds and develop the securities investment fund business.

These moves are in line with the central government’s recent measures to open more State-owned and monopolized sectors to private investment and stimulate economic growth.

The State-owned Assets Supervision and Administration Commission of the State Council provided general directions on Friday for private capital to participate in the restructuring of State-controlled business through cash investment, share stake acquisition and finance leases.

chenjia1@chinadaily.com.cn

 

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