Chinese authorities have recently begun initiatives to attract listings by large tech firms. In July, the Shanghai Stock Exchange launched its Nasdaq-style STAR board for technology stocks.
The platform is responsible for registering IPO requests. The amended securities law also offers better protection for minority investors and requires companies to establish dispute resolution mechanisms to address shareholder grievances and improve transparency.
Companies found guilty of making false or misleading statements or withholding important information from shareholders are liable to face penalties ranging from one to 10 million yuan ($143,000 to $1.4 million).
The law also includes tougher punishments for securities fraud and insider trading. Individuals found guilty of insider trading will be fined two to 10 times the value of their ill-gotten gains. Financial sector employees, including regulators and those who work for brokerages or stock exchanges, are also barred from securities trading for their own account.