Chairman of China Securities Regulatory Commission (CSRC), Shang Fulin, vowed to reform its mechanism for initial public offerings (IPO) of shares, Shanghai Securities News reported Monday.

At an annual national work conference on securities and futures, Shang Fulin announced the regulatory commission will give priority to market-oriented system reform and IPO issuance reform.

This announcement came amid an economic slump that has brought the country's stock IPOs to a standstill.

The Commission has also promised to allocate new shares more fairly through a subscription system, and regulate stock pricing that will better reflect supply and demand.

At the meeting Shang sought advices from investment institutions and investors, covering areas of focus like price inquiry systems, price inquiry efficiency and the assignment mechanism of stock, as well as non-circulative stock issue.

Insiders say the Commission considered restricting price inquiry institutions from participating in online purchases and security placement. Industry insiders said that following the development of the securities market, the current regulations on the insurance and underwriting published in 2006 have to be modified and revised.

(CRIENGLISH.com January 20, 2009)