China's top securities regulator Xiao Gang said on Thursday the country was revising its securities law to allow unprofitable companies to sell shares publicly, the official Shanghai Securities News reported on its website.
Currently, companies that apply for initial public offerings (IPOs) on the mainland must have a track record of being profitable, forcing firms such as JD.com Inc to list abroad.
Xiao, the chairman of the China Securities Regulatory Commission (CSRC), told the newspaper that unprofitable companies were not necessarily bad companies, and the job of judging whether they could make profit in the future should be left to the market.
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