China will launch a registration-based initial public offering (IPO) system in March 2016 to boost the role of the country's stock market and provide the necessary financing for companies.

On Sunday, the country's top legislature authorized the State Council to roll out the new IPO mechanism before completing the amendment of the Securities Law.

In a statement by the China Securities Regulatory Commission (CSRC), officials said the legislative approval of launching the registration-based IPO system marked significant development to the Chinese capital market and implements an important measure to allow the market force to determine the allocation of resources.

"It is not merely about delegating the IPO approval power to the stock exchanges but a major transformation of the regulator's role," the CSRC said.

The registration-based IPO system will emphasize the information disclosure rather than corporate prospect and profitability.

The regulator said that it will no longer endorse the value of prospective companies under the new system. But initially, it will still control the pace and pricing of IPOs to maintain market stability.