(Yicai Global) July 24 -- Some recent speculations have swirled that China may further ease IPO restrictions after direct financing was placed as a top priority at the 'National Financial Work Conference.' Chang Depeng, spokesperson for China Securities Regulatory Commission (CSRC), said at a regular press conference on July 21, that the commission would apply stringent standards for listing, further overhaul the capital market and continue to crack down on fraudulent issuance.

Chang said that CSRC would earnestly implemented the important instructions made by China's President Xi Jinping at the conference, that is, "Placing development of direct financing as a top priority and establishing a multi-level capital market which provides well-established financing function, solid basic system, effective market supervision and effective protection of investors' legitimate rights and interests," to give full play to the capital market's functions of serving the real economy and boosting the supply-side structural reform.

Specifically, CSRC will apply stringent standards for listing by continuing its law-abiding, comprehensive and rigorous regulation. To realize this, it will stick to the problem-oriented methods, perfect the IPO on-site examination, review and regulate lawfully and strictly, and request the issuers and agencies to fulfill their responsibilities and duties to prevent dysfunctional enterprises from going public.

It will also try to maintain the capital market order by adopting a zero-tolerance attitude to and crack down those who conduct fraudulent issuance, illegal information disclosure, market manipulation, insider trading, and other illegal activities in the securities market. By doing this, CSRC tries to purify the market environment, improve the ecosystem of the capital market, maintain a transparent, fair and equal market order, and protect the legal interest of investors, especially the medium and small ones, Chang added.

Moreover, CSRC will keep stabilizing and developing the capital market to pave the way for the country's social and economic development under the 'new normal.' It will further enhance the role of the capital market as a place for investment and financing, propel the marketization of the resource distribution of the capital market orderly, further identify the market expectations, and empower the capital market to better provide services for the real economy, Chang underlined. All these can help the capital market develop soundly, stably and sustainably, and facilitate the institutional construction and improvement.