CSRC Pushes for Easing Regulations to Stimulate A-Share Market Growth
CSRC's Call for Policy Easing
Shang Fulin, the former chairman of the China Securities Regulatory Commission (CSRC), emphasizes the need for loosening regulatory grip on equity financing. At the Bund Summit in Shanghai, he stated that China’s financial system is structurally reliant on bank loans, which limits technological innovation.
Market Dynamics and IPO Declines
Amid a staggering 86% decline in IPO proceeds from January to August, Shang advocates for better use of capital markets to enhance investments in technology. Data shows that only 59 companies raised 42.2 billion yuan in the same period, starkly lower than last year.
Strengthening the Capital Market
- Shang's remarks stress that the capital market is more effective in supporting start-ups than traditional bank financing.
- Beijing must tweak the capital market to better support high-growth technology firms.
Implications for Future Growth
As the capital market plays a pivotal role in funding technology, Shang believes that easing IPO regulations could spur development and attract further investments.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.