Li Keqiang suggests capital market reforms to go live this year

Want China Times, Staff Reporter 2015-03-21

A securities company in Haikou, Hainan province, March 10. (File photo/CNS)

The word "implement" has made it into premier Li Keqiang's annual government work report, which detailed the strengthening of the capital market system and reform of the stock issuance registration system, reports the Guangzhou-based 21st Century Business Herald.

Li made the report during the dual sessions of the 12th National People's Congress (NPC) and the 12th National Committee of the Chinese People's Political Consultative Conference (CPPCC), which ended on March 15.

The annual government report and suggestions made by the representatives of the two sessions have a major impact on the proceeding year's government policy. This year clearly is a key year in deepening reforms on all sides, especially the capital market, from supervision of internet finance and development of assets security, to the introduction of government bond futures and crude oil futures.

The stock registration system showed up on the central government document for the first time in November 2013. Since then, the government has mentioned the system in several major conferences, including Li's annual government report in 2014. China Securities Regulatory Commission (CSRC) chairman Xiao Gang said during the two sessions that the main task in 2014 was to formulate the reform proposal for the stock registration system, but not to implement it.

Li's remarks are highly indicative of action on registration system reform this year. The CSRC is actively researching into the details of the reform and has formed an initial proposal, said Xiao, without giving a concrete timetable for the actual implementation.

To implement the stock registration system, the government will have to first revise the Securities Law, which is expected to go through its first reading in late April.

Wu Xiaoling, deputy chairperson of the NPC's finance and economic committee, said the NPC may conduct the second reading on the Securities Law revision in August and the third in October at the earliest. The earliest timeline for wrapping up the revisions would be in the fourth quarter.

Other major reforms mentioned in the two sessions include the action plan for internet finance, assets security, and the stock connect between Shenzhen and Hong Kong.