Wen hints at support for securities regulation overhaul

Chinese premier Wen Jiabao made comments at China’s annual National People Congress suggesting he will throw his weight behind proposals by Guo Shuqing, the country’s securities regulator, to overhaul and liberalize capital markets, The Wall Street Journal reported. “We will improve both initial public offerings and delistings, and ensure better protection of returns on investors’ money and their rights and interests,” Wen said in a speech Monday. The comments suggest support for recent liberalization efforts by Guo Shuqing, the new head of the China Securities and Regulatory Commission. Guo has proposed allowing local pension funds to invest in the stock market, creating a high-yield bond market and reducing the role of regulators in pre-IPO screening, among other measures. IPOs on the country’s bourses are “still too high,” Guo remarked at the NPC.