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CSRC Claims Not to Control Issuance of New Stock
On June 8 When explaining the reason for the unstable issuance quantity of new stocks, an official with the China Securities Regulatory Commission (CSRC) said that many enterprises which applied for new stock issuing have been vetoed by the examination and approval committee since May. He emphasized that the change in the pace of the issuance of new stock and the stock market quotation should reflect the relationships between demand and supply of the market. There does not exist the problem that the regulatory department intervenes in the market quotations through controlling the pace of the issuance of new stocks.
He said that in order to ensure the quality of listed companies, China Securities Regulatory Commission asked the enterprises which apply for listing to supplement the year-end auditing of 1999 when making the examinations to be carried over to 2000. The auditing can generally be finished in March which has thus prolonged the preparation work by the enterprises. Therefore there were not many new stocks issued in the first quarter. From April, all the enterprises have finished the year-end audit of 1999. The speed of the issuance of new stocks was quickened. However, since May, many enterprises which applied for issuance of new stocks have been mostly vetoed by the committee.
He added that China Securities Regulatory Commission has been busily promoting the establishment of a market-oriented stock-issuing mechanism. Anything that can be decided by the market should be done so, and administrative intervention in the market should be avoided as far as possible..
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