SSC looks to spark market

November 17, 2011 | 17:36

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The State Securities Commission has announced a mid-term plan for boosting the gloomy local securities market.

The plan maps out the SSC’s unfinished legal frameworks and building projects, plus timelines for introducing new investing instruments for the local market.

A decree on guiding the amended Law on Securities would be finished first. The legal document completed its drafting progress and is expected to be promulgated within this fourth quarter.

However, a guiding circular’s is still being set up.

Of the policies and projects built by regulators, a project for restructuring brokerage firms had been submitted to the government for coming into action next year. At the same time, new regulations of higher standards for shares issuance and listing securities are planned to come into effort in 2012’s first quarter.

Other long-term and mid-term projects for developing the local securities market, such as restructuring the government bond market and building up derivatives market, were submitted to higher-legal authorities.

Of the new trading instruments to be introduced soon, SSC indicated that the circular on open-ended funds was being promulgated in this fourth quarter, while the other fund models such as real estate investment trusts and pension funds would be introduced within 2012.

Besides depositary receipts, which were approved by the government, are undergoing a pilot progress and are expected to officially be launched in 2012’s first quarter.

Other instruments being discussed, such as new indexes, will continue to be developed.