China to boost capital market expectation, deepen reforms

The government will attach more importance to analyzing capital market performance and help form a positive expectation over market development, Chinese Vice-Premier Liu He said on Monday.

The country will also take further steps to leverage the role of the market in selecting and nurturing quality firms, increase the number of institutional investors with long-term performance goals, promote the development of value investing, and strengthen information disclosure of listed firms, Liu said.

Liu made the remarks in his written address to the listing ceremony of the first batch of 18 firms that made market debuts under the registration-based system of the Nasdaq-like ChiNext board in Shenzhen on Monday.

The ChiNext reform has laid the ground for implementing the registration-based system on the main board and the SME board that targets small- and medium-sized firms, serving as a significant push toward improving the capital market system and economic circulation, Liu said.

Liu said he hopes that the ChiNext will better serve growth innovative firms and startups and complement other sub-markets in supporting more quality firms getting listed in mainland bourses.

He added that the capital market plays a pivotal role in optimizing resource allocation and achieving high-standard economic circulation, while the market has seen profound structural changes as the nation pushes ahead reforms in the areas such as new share sales, trading, delisting and investor protection.