China to tighten IPOs, checks on listed firms to boost stocks

The CSRC will also guide stock exchanges to modify listing rules, and raise financial requirements for share sales in certain sectors.

China’s markets regulator vowed to tighten listing requirements onshore and beef up checks on listed firms, in its latest effort to inject confidence in the nation’s $9.2 trillion stock market.

The China Securities Regulatory Commission will put more stringent requirements in place for initial public offerings, Yan Bojin, an official with the regulator, said at a briefing in Beijing on Friday.

The watchdog will study and re-evaluate listing standards for certain sectors, and bolster reviews for companies aspiring to do IPOs that haven’t yet made a profit, said Yan. The CSRC will also guide stock exchanges to modify listing rules, and raise financial requirements for share sales in certain sectors.

The remarks shed more light on how the watchdog aims to follow through on earlier pledges to step up oversight of the listing process and crack down on financial fraud to revive stocks.