BEIJING - Seeing a catfish effect from the launch of new science and technology innovation board, local analysts have put high hopes on the country's IPO review reform and expect higher efficiency.

Pan Xiangdong, chief economist with the New Times Securities, said that the new board had played the catfish effect by attracting an increasing number of companies to apply to be listed there.

By Thursday, the Shanghai Stock Exchange has had 62 companies apply to be listed on the new board. With the technical system expected to be ready by the end of May, the new board will pilot a registration-based IPO system.

Under the current IPO system however, new shares are subject to approval from the China Securities Regulatory Commission (CSRC).

Since the new review panel of the CSRC started work in February, it has examined the IPO applications of 12 companies, with only one rejected.

Pan said that the review process had been quickened as the emphasis of review was shifting from profitability to authenticity, completeness and accuracy of information disclosure.

The review panel has set strict requirements on listing and delisting, he said.

Bian Yongzu, a researcher with the Chongyang Institute for Financial Studies of the Renmin University of China, noticed more positive changes.

He said that the panel not only examined the past rates of return of applicant companies but also focused more on their growth potential, paid more attention to profit models and business strategies, and tended to encourage growth enterprises to go public.

On March 25, CSRC released Q&As on IPO review, clarifying the standards on common legal and financial accounting issues concerning applicant companies as well as the due diligence of intermediary agencies.

It was also the first time for the security watchdog to make public its review standards.

Liu Naisheng, a member of the executive committee of China Securities, lauded the move, expecting more openness and transparency as well as better regulated supervision based on laws.

Pan suggested the regulator better coordinate supervision on different boards and improve requirements on information disclosure quality and simplify delisting procedures.

Small and medium-sized enterprises that perform well in their main business and compliance management should be encouraged to go public, which needs the concerted efforts and more input of intermediary agencies, local governments and the security watchdogs, Pan said.