China overhauling IPO process, mulls foreign firms listing: report

China will switch to a "registration system" for initial public offerings (IPO), ending the current approval process, the official China Securities Journal reported on Tuesday, a day after parliament began reviewing draft changes to the Securities Law. A registration system - used in mature markets such as the United States, where the market decides who gets to list, when, and for how much - will obviate the China Securities Regulatory Commission's (CSRC) role as the approval agency, industry sources say, and leave companies to register with stock exchanges to float shares. "The promulgation of the share issue registration system will focus on information disclosure and thus enable market participants themselves to judge the issuers' quality of assets and investment value," the newspaper quoted Wu Xiaoling, a lawmaker at the National People's Congress (NPC), China's parliament, as saying.

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