IPO reform draft may finish legal steps soon

The legal procedure for registration-based initial public offerings is expected to be completed as early as the end of this month, a substantial step to wrap up the biggest reform of China's stock market.

An executive meeting of the State Council, presided over by Premier Li Keqiang on Wednesday, discussed a draft amendment to the country's Securities Law that proposed changing the current approval-based IPO mechanism to a registration-based one at the Shanghai Stock Exchange and Shenzhen Stock Exchange. The change would occur within two years of the draft's approval.

At the earliest, the draft could pass the country's top legislature at the end of this month to finish the required legal procedures that are a precondition to any changes being made to the IPO system, experts said.