New mainland IPO approval process moves ahead in legislature

The standing committee of China’s rubber-stamp National People’s Congress has officially endorsed a plan to allow mainland stock exchanges to vet and grant Chinese firms approval to list publicly, ending the gate-keeping role of the China Securities Regulatory Commission in initial public offerings, South China Morning Post reported. The transition is expected to begin on March 1 and take about two years, the Post asserted. At present, companies hoping to list in Shanghai or Shenzhen often wait over half a year for approval from the commission, which also decides the price range for shares and when listings will occur.