The Future of Chinese Markets

In 2015 China's State Council approved to shift to a US style registration system for stock market flotations. The new registration system replaces the current IPO approval which has been criticised for its complexity and strict requirements. Meanwhile, China has created a more-favourable environment to attract the relisting of Chinese technology companies listed overseas and enable mutual market access between the mainland and Hong Kong via a 'Stock Connect' link, opening Chinese equity markets to international investors. The paper aims to analyse the recent stock market reforms in China and how such changes affect the future of Chinese capital markets. It covers the recent IPO reform and the new initiatives to attract Chinese technology companies to list or relist domestically, as well the internationalisation of Chinese capital markets.