Innovation board drives stock market reform

An investor checks stock prices at a brokerage in Shenyang, capital of Liaoning province. [Photo provided to China Daily]

Editor's Note: In a recent interview with the media, Chairman of the China Securities Regulatory Commission Yi Huiman said the pilot registration system marks the biggest institutional breakthrough in the reform of the science and technology innovation board on the Shanghai Stock Exchange and the direction for the reform of the entire capital market. Beijing Youth Daily comments:

On Nov 5 last year, President Xi Jinping announced at the opening ceremony of the first China International Import Expo that the science and technology innovation board would be set up and a registration system piloted. Over the past year, the smooth establishment of the science and technology innovation board with its pilot registration system has been the top priority for the reform of China's capital market.

Replacing administrative review and approval with the pilot registration system is the biggest institutional breakthrough of the science and technology board. After more than 100 days since its launch, the trial of the registration system has advanced in a smooth and orderly manner, with all procedures open and transparent.

After withstanding market tests, the science and technology innovation board now shoulders two major missions. The first is to promote China's economic innovation transformation through the force of the capital market, that is to say, forming an effective system to cultivate excellent scientific innovation enterprises. The second is to promote the reform of China's capital market through this "experimental field".

The difficulties involved in listing and delisting have long been chronic diseases in China's capital market. The establishment of the science and technology innovation board and its pilot registration system mark an important breakthrough in comprehensively deepening reform of China's capital market and the board is the main "prescription" to treat the chronic diseases.

The science and technology innovation board and its registration system represent the future of China's capital market reform and this "experimental field" shoulders the important task of leading the country's innovation so that the Chinese stock market can better serve the Chinese economy.