China passes law to ease IPO requirements

New rules for Shanghai and Shenzhen bourses aimed at preventing overseas floats

20191230 Shanghai

The launch of the Star market in the hall of Shanghai Securities Exchange in Shanghai on July 22. © AP

CK TAN, Nikkei staff writer

SHANGHAI -- China's top legislative body approved a legal revision aimed at easing listing requirements, in an apparent bid to prevent Chinese companies floating their shares on overseas bourses.

Effective March 1, companies seeking an initial public offering on the Shanghai and Shenzhen exchanges will be vetted by the bourses rather than the watchdog, the China Securities Regulator Commission, state media reported Sunday.

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