China's newly-revised regulations on initial public offerings (IPO) came into effect on Thursday, another strong indication that China will soon allow IPO trading to resume.

More than a year ago China suspended IPOs and began an overhaul of the country's capital market.

The new rules, which were made public late Wednesday by the country's securities watchdog, contain 70 conditions under which companies can issue an IPO and apply to be listed on stock markets.

The new rules also require detailed information disclosure and prescribe penalties for irregularities.

It is widely expected that China will resume IPOs later this year and the publication of the new rules seems to make that more certain.

Shang Fulin, chairman of the securities watchdog, the China Securities Regulatory Commission, has said the commission will minimize the negative impact of the resumption of IPOs on the stock markets by regulating the number and timing of IPOs.

Experts said IPOs could siphon capital from existing stock but argue the new stocks will bring more opportunities for investors.

Source: Xinhua