Stricter scrutiny for capital markets

Latest guideline encourages long-term investment to create greater stability

China has recently released a guideline to ensure the high-quality development of its capital markets, with particular emphasis on strict scrutiny of initial public offerings, strengthened trading regulation and the promotion of long-term capital investment.

With the intention of deepening capital market reforms, China aims to create a more transparent, efficient and investor-friendly environment, and foster a robust and well-regulated financial system that can better underpin sustainable economic growth, officials and experts said.

In mid-April, the State Council, China's Cabinet, issued a guideline to strengthen regulation and risk prevention, and promote the high-quality development of capital markets. It's the third guideline released by the State Council concerning capital market reforms and strategic planning, following similar releases in 2004 and 2014.