BEIJING, May 8 -- The China Securities Regulatory Commission (CSRC) proposed April 28 a series of changes in rules for initial public offerings (IPOs) aimed at promoting listings of high-quality companies.

    The proposed rules require firms planning IPOs to have three straight years of profits, at least 30 million yuan (US$3.7 million) in combined net profit in the past three years, and a minimum 300 million yuan in total revenues over the period. CSRC is seeking public comment on the proposals.

    China's current regulations only generally require IPO firms to have an ability to ensure sustained profit ability and to be in good financial condition.

    "An amendment of the rules is aimed at ensuring share issuance and listings of large-scale and high-quality companies," the proposed rules said.

    The proposed rules also included other requirements on aspects such as information disclosure, corporate connected transactions and rights issues.

    They are open to public feedback until May 14, and a final version will be formally promulgated shortly, the stock regulator said.

    Chinese investors have complained that they are deprived of the right to enjoy part of the outcome of China's surging economy, which grew 10.2 percent in the first quarter from a year earlier, because quality firms have flocked for years to more transparent, liquid markets both abroad and in Hong Kong.

    The proposed rules will also pave the way for China to allow its companies, such as Air China Co., to return home to raise capital on the domestic Shenzhen and Shanghai stock exchanges, ending a year-long suspension.

    (Source: Shenzhen Daily/Agencies)