(Yicai) June 20 -- China intends to expedite approvals for offshore initial public offerings by mainland companies, according to a vice chairman of the country’s securities regulator.

The process is quicker than before, but still not fast enough, with many companies waiting in line, Fang Xinghai said at the Lujiazui Forum in Shanghai yesterday.

Since the new process was introduced in March last year, companies have been actively pursuing offshore listings, he noted. As of June 18, 158 businesses had filed for IPOs outside of the mainland: 85 in Hong Kong and 73 in the United States.

“There are a lot of companies in line, which is a good thing,” Fang said. “It shows that China has a large number of very active companies aiming to become bigger and stronger.”

The China Securities Regulatory Commission supports firms seeking to list offshore, in particular those with big financing needs and a great ability to innovate technology, and it will encourage more to list in Hong Kong, Fang added.

An expedited process can also address the challenge faced by private equity investors and venture capitalists in exiting their investments. Fang said the belief among market participants that the primary market has essentially disappeared is over-exaggerated. Citing data from the China Association of Fund Management, he pointed out that in the first quarter of this year, PE and VC poured CNY191.5 billion (USD26.4 billion) into 4,438 projects.

Despite a slowdown in such investment, it is likely to total CNY800 billion to CNY1 trillion (USD110.2 billion to USD137.8 billion) this year, Fang pointed out. PE and VC funds are essential in promoting scientific and technological innovation and the CSRC will strive to support their growth, he said.

Moreover, Fang emphasized the importance of China’s capital market, which should exploit the country’s advantages in terms of talent, capital, and market to promote innovation, especially independent innovation.

Editor: Futura Costaglione