MNI China Press Digest June 20: CSRC, Overcapacity, SME Fund

Highlights from Chinese press reports on Thursday:

• The China Securities Regulatory Commission has released eight reform measures on the science and technology innovation board to improve the inclusiveness of new industries, Securities Daily reported. The CSRC will support those high-quality but not-yet-profitable companies to list and establish a green channel for equity and debt financing, mergers, and acquisitions of key technology enterprises. The regulator will also strictly crack down on fraudulent issuances and financial fraud and guide the founding team or core R&D personnel to extend the share lock-up period voluntarily, the newspaper said.
• Authorities need to expand domestic demand to deal with overcapacity rather than engaging in “de-capacity” which may lead to shortages in the long term, according to Chen Yuyu, a director at the Peking University Institute of Economic Policy. Beijing should negotiate with the EU and U.S. to find a solution that respects all parties' security and stability, and avoids trade frictions. The government should ensure Chinese companies have an international environment to allow them to “go global”. (Source: 21st Century Business Herald)
• Authorities will support new SMEs with central fiscal funds and promote fresh industrialisation, the Ministry of Finance has announced. According to a notice on the ministry’s website, local governments are encouraged to enhance SME innovation through the guidance of central funds, and give play to the leading role of specialised "little giant" enterprises. Central fiscal funds will support SMEs in key areas to tackle new technologies and develop new products, the notice added. (Source: Securities Daily)