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Govt policy moves from past weeks

Zhang Yunbi
Updated: Oct 20,2020 06:57 AM    China Daily

Quality growth of listed companies prioritized

On Oct 9, the State Council, China's Cabinet, issued a circular outlining plans to improve the quality of listed companies and achieve healthy development of the capital market.

The number of listed companies in China has risen significantly in recent years, but problems still exist, such as management irregularities and a lack of quality in development, the circular said.

It said listed companies should standardize their management systems and clarify the duties and legal responsibilities of controlling shareholders, directors, supervisors and senior managers.

Meanwhile, listed companies, shareholders and other relevant parties should disclose true, accurate and complete information in a timely manner.

A registration-based bond issuance system will be introduced and listing standards will be optimized to help high-quality companies go public on the stock market.

Assistance will be strengthened for companies with the potential to undertake an initial public offering, according to the circular.

Market-oriented mergers and acquisitions will be promoted to encourage listed companies to revitalize their assets and achieve transformation for development.

The financing systems of listed companies should be improved by strengthening coordination and balance between the financing and investment ends. Also, listed companies are urged to optimize their financing arrangements based on both development needs and market conditions.

The incentive and restraint mechanism for listed companies should be improved as well, the circular said.

Moreover, it urged efforts to refine the delisting mechanism by improving delisting standards, simplifying procedures, intensifying supervision and broadening exit channels.

Related government departments should solve prominent problems facing listed companies and strengthen policy support for listed companies severely affected by major emergencies, according to the circular.

Furthermore, listed companies and related entities should face stronger penalties for actions contrary to laws and regulations.

Relevant departments should strengthen supervision and urge listed companies as well as intermediary agencies to fully accept their responsibilities.

Zhejiang administrative changes approved

To catalyze reform and policy piloting, the State Council issued a circular on Oct 15 approving temporary changes to four administrative regulations requested by the eastern province of Zhejiang.

The changes help to streamline administration, improve government services and create a more enabling business environment.

The four regulations are related to marriage registration, quality management, surveys and design of construction projects, and drug sector administration.

Under one of the changes, mainland couples undertaking marriage or divorce procedures can choose any marriage registration authority in Zhejiang if either party is a registered permanent resident in the province.

Prior to the change, such couples had to opt for either of the authorities that held their household registration information.

For construction projects, the adjusted rules allow the province to manage and regulate construction design documents by categorization, exempting projects in low-risk categories from review, according to the circular.

Before, blueprint documents could not be implemented until the end of a government review.

Entrepreneurs looking to register businesses in pharmaceutical retailing in the province will no longer require regulatory approval for startup preparations.
The adjustments will be effective until Dec 31, 2023.

The circular urged related State Council departments and the Zhejiang government to align their regulations with the latest changes and shape supervision and management systems to better match the reforms.