Image Credit - Caixin global
China is set to introduce a series of new measures to further deepen the reform of the Science and Technology Innovation Board, commonly known as the STAR Market. This announcement was made by Wu Qing, Chairman of the China Securities Regulatory Commission (CSRC), during a speech on Wednesday. The planned reforms are aimed at enhancing the STAR Market’s ability to support technological innovation and contribute to the country’s economic development.
The STAR Market, established in 2019, has been a cornerstone of China’s efforts to create a more robust and dynamic financial ecosystem tailored to the needs of technology and innovation-driven companies. Wu Qing emphasized that the new measures will focus on refining stock issuance and underwriting mechanisms, streamlining processes for mergers and acquisitions, and promoting the development of high-quality productive forces in the economy.
One of the primary objectives of the upcoming reforms is to simplify the stock issuance process. Wu Qing highlighted the importance of making it easier for companies, particularly those in the tech sector, to go public and access capital. By reducing the complexities and costs associated with stock issuance, the CSRC aims to attract more high-quality tech firms to the STAR Market, thereby boosting its role as a platform for innovation and economic growth.
Additionally, the reforms will introduce improvements to the underwriting mechanisms. The goal is to create a more efficient and transparent system that aligns with international standards, making the STAR Market more attractive to both domestic and international investors. Wu Qing noted that enhancing the market’s liquidity and ensuring fair pricing for stocks are critical for its long-term success and competitiveness on the global stage.