Registration-based IPO mechanism was first experimented at the Nasdaq-style STAR Market at the Shanghai Stock Exchange in July 2019. Zhongshan Securities’ chief economist Li Zhan said that the work report has demonstrated the regulator’s resolution to remove the disqualified companies from the A-share market. “The registration-based IPO reforms must be coordinated with a responsive delisting mechanism. It is only by controlling both the entrance and exit of the market can a deepened capital market reform be realised and a sound market order built. The combination of the IPO and delisting mechanism will generate a positive influence on the capital market,” he said.

Source: The Star March 08, 2021 01:52 UTC