With the continuous development of economy, China's capital market is also growing. However, in recent years, the IPO market in China has been at a standstill. In order to solve this problem, China Securities Regulatory Commission issued "Several Opinions on Deepening Capital Market Reform and Supporting Scientific and Technological Innovation" at the end of 2020, and put forward a series of new policies aimed at restarting IPO and injecting new vitality into China's capital market.

Policy Interpretation: Reform of IPO Audit System

First of all, the new policy proposes the reform of IPO audit system. In the past, China's IPO audit system has been criticized as too strict and the audit time is too long. In order to solve this problem, the new policy proposes a series of reform measures, including simplifying audit procedures, shortening audit time, and strengthening the construction of audit personnel. The implementation of these measures will greatly improve the efficiency of IPO audit and speed up the listing of enterprises.

Policy Interpretation: Reform of Registration System

Secondly, the new policy proposes to reform the registration system. Registration system refers to the supervision system with information disclosure as the core. Compared with the current examination and approval system, the registration system is more market-oriented, transparent and standardized. The new policy proposes that the reform of the registration system will be gradually promoted, the threshold for listing enterprises will be lowered, the listing speed of enterprises will be accelerated, and the market efficiency will be improved.

Policy interpretation: the reform of science and technology innovation board

Finally, the new policy proposes to reform the science and technology innovation board. Science and technology innovation board is an important innovation in China's capital market, which aims to support the listing of scientific and technological innovative enterprises. The new policy will further improve the system of scientific and technological innovation board, speed up the listing of scientific and technological innovative enterprises and improve market efficiency. At the same time, it will also strengthen science and technology innovation board's investor protection mechanism and improve its ability to guard against market risks.