China should amend its Securities Law to abolish the complicated verification procedures for initial public offerings and establish a registration issuance system. The China Securities Regulatory Commission should act more as a supervisor of the stock market rather than a dominator, says an article in Beijing News. Excerpts:

It is already a consensus that China will replace its verification-based IPO system with a much simpler and efficient registration system. But the reform first entails the amendment of the current Securities Law.

Without issuance system reform, the constant patchwork reform of the current verification system cannot bring fundamental changes to the modernization of China's stock market.

Under the registration system, all qualified enterprises can issue shares as long as they abide by relevant laws and rules and fulfill their obligations of information disclosure. The IPO registration system will let the market replace the government's verification power and further revitalize China's capital market.

The legislature body should seek advice from companies and investors to ensure the revision of the Securities Law can effectively facilitate future systematic reforms of China's stock market.