Steps taken by the China Securities Regulatory Commission to improve the initial public offering system are expected to protect the interests of small and medium-sized investors, but the IPO pricing system should be more market-oriented, experts said.

The number of shares sold by existing shareholders should be less than the number offered to investors who will hold them for at least 12 months, the CSRC said on Friday.

"The system of share transfers from existing shareholders has some deficiencies. The measures will protect the interests of new shareholders," said Hong Hao, managing director and chief strategist at BOCOM International Holdings Co Ltd.