China’s Securities Regulatory Commission (CSRC) issued a proposal late last week listing plans to prolong its shift from an approval-based stock listing system to a registration-based one, Caixin Global reports.
The new deadline for the transition will be February 29, 2020 – a two-year extension from the original of February 28th this year.
The current system requires companies that want to issue new shares to first obtain approval from the CSRC. Under the new registration-based system, the market would have more of a say in the listing of new stocks, as it functions in countries like the U.S. and U.K.
In the proposal, CSRC chairman Liu Shiyu said that China needs more time to “maintain the continuity of work, prevent misunderstandings and misgivings in the market, and to further accumulate practical experience in the revision of securities laws.”