After finishing its experimental share structure reforms, China is preparing for a comprehensive split share reform whose fate will depend heavily upon the restoration of investor confidence.

Yi Xianrong, an expert with the Institute of Finance of the Chinese Academy of Social Sciences, made the remark in his article publicized in the Oriental Morning Post on August 25.

The guidelines recently promulgated by the government on split share reform called for gradual and stable reform in this area, as well as protection of investors' legal interests, the article said.

As for over 1,000 listed companies in China, however, one guideline is never enough, so relevant systems and regulations still need to be improved to suit the specific cases, it said.

Whether the share reform is successful or not does not depend on how much the stock indexes have risen, but on whether public investors' confidence has been restored, since the purpose of the share reform is to create conditions for the continuous and stable development of China's stock market, it said.

The guidelines will play an important role in directing future share reforms, but securities watchdogs still need to formulate follow-up detailed regulations to deal with more complicated problems in the comprehensive reform, it said.

Source:Xinhua