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System Helps Boost Stock Market
China's top securities regulator said Tuesday that the State is now considering establishing an unified share registration, transaction and settlement system at the domestic stock market.
The move is believed to be one of the biggest steps taken by the authorities to help establish a more transparent, healthy and market-oriented stock market in China.
Currently, China's two bourses in Shanghai and Shenzhen have separate systems for transactions, registrations, settlement and information transformation, which often results in higher costs and inconvenience to the investors.
"And a unified index system would also be established in the near future to help investors ward off trouble when selecting and choosing shares in the two domestic markets," said Tu Guangshao, secretary-general of the China Securities Regulatory Commission (CSRC).
Tu said the commission is also considering allowing commercial banks to provide extended securities services for industry operators and fund management firms in a move to reduce cost and improve efficiency.
"Reforms towards more market-oriented operating mechanism would be the top priority of our schedule," said Tu.
He said the commission would also strengthen its supervision over the information publishing system of the listed firms to ensure a fair, open and more transparent market environment for investors.
Tu also claims the State will revise more laws and regulations that would help bar those illegal operations of the market.
These laws and regulations, according to Tu, mainly include revision of the securities law and development of its affiliated regulations and new laws.
Speaking at the seventh annual Asia Pacific Finance Association conference, Tu said the commission is considering plans to allow more China-based Sino-foreign joint ventures and foreign wholly owned enterprises to trade in the domestic second market.
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