Jiang Yang, vice-chairman of the China Securities Regulatory Commission, answers reporters' queries after a panel discussion of the ongoing annual session of the 13th National Committee of the Chinese People's Political Consultative Conference (CPPCC). [Photo by Zou Hong/China Daily]

New measures to foster growth of innovative industries, says CSRC official

China's securities regulator will continually reform the country's stock market listing system to support the development of new technology and innovative industries, a top official said on Tuesday.

The reform, which is shifting from an approval-based initial public offering system to a more market-oriented system based on registration, will be pushed forward steadily based on a "normalized" IPO issuance pace, said Jiang Yang, vice-chairman of the China Securities Regulatory Commission, the country's securities regulator.

An equity-based crowdfunding pilot will be studied, to mainly support small-sized enterprises, also as a way to further develop a multi-tiered capital market, according to Jiang, who is also a member of the 13th National Committee of the Chinese People's Political Consultative Conference (CPPCC).

A session of the Standing Committee of the National People's Congress, the top legislature, passed a draft decision recently to prolong a mandate, which allows the State Council to prepare for the IPO reform for another two years to Feb 29, 2020.

The securities watchdog was asked to keep promoting IPO system reform and enhance coordination with other agencies to prevent and address financial risks and protect investor interests, according to the decision.

Premier Li Keqiang said in the Government Work Report delivered to the first session of the 13th National People's Congress on Monday that the government will further reforms and improvements to the financial service system, support to financial institutions in expanding their inclusive finance business and an added focus on solving the financing problems of small and micro enterprises.

The premier also pledged to set up a state financing guarantee fund, support leading innovative enterprises in going public and extend nationwide the pilot preferential tax policies for venture capital investment and angel investment.

"We are coordinating with the State Administration of Taxation, to carry out the beneficial tax policies for venture capital investment and angel investment," said the CSRC official.

In the Government Work Report, Li said: "We will deepen the reform to develop a multitiered capital market, and promote the development of the bonds and futures markets."

In order to ensure a heathy development of the country's futures and financial derivatives market, the country will accelerate innovation by developing more commercial futures and options instruments, improve the "insurance plus futures" pilot program and ensure a steady launch of crude oil futures. The country plans to launch crude oil futures on March 26, as the world's second largest economy moves to gain pricing power over commodities.

After years of false starts, the crude futures contract will make its debut at the Shanghai International Energy Exchange.