The China Securities Regulatory Commission said on Wednesday that it will prioritize IPO applications from companies in western China, and their listings will be equally distributed between the Shanghai and Shenzhen stock exchanges.

"This will accelerate new share issues from companies in western China and support the development of the regional economy," a senior CSRC official said at a news conference.

The priority area covers 11 provinces and autonomous regions, three autonomous prefectures and one municipality, including Chongqing, Gansu, Inner Mongolia, Xinjiang and Tibet.

Companies from western China raised a total of 78 billion yuan ($12.28 billion) on the stock market last year, with 18 companies launching IPOs on the main and ChiNext boards, raising 15.5 billion yuan last year, according to the CSRC.

"The stock market has effectively helped the capital flow into less-developed areas and supported the expansion of high-quality businesses," said the CSRC official.

"It further balanced the nation's economic growth between the west and the east."

The development of the stock market in the western area lags far behind the eastern regions, the official said. Last year, western companies accounted for 5.48 percent of the nation's 282.5 billion yuan in IPOs.

The CSRC said it is currently reviewing IPO applications from 683 companies on the mainland, among which only 9.66 percent are from the western region.

Ran Yun, chairman of the board of Sinolink Securities Co Ltd, suggested local governments in the western region provide preferential policies in order to attract more securities companies and financial institutions to open branches there, as well as boost competition among intermediary agencies, such as legal and accounting firms.

As economic growth further cools in China, the government is launching new stimulus policies to boost domestic demand and facilitate investment, especially to support industrial development in less-developed western regions.

The CSRC also vowed to accelerate the listing of private companies to help stabilize economic growth.

In addition, the process of administrative licensing for private shareholders when increasing stakes in securities and fund management companies will be accelerated, said the CSRC.

chenjia1@chinadaily.com.cn

(China Daily 05/31/2012 page17)