Based on the annual work report delivered by premier Li Keqiang and the statements issued by the various regulatory departments, it is certain that this year the key tasks of the central government include strengthening financial regulation, preventing financial risk and rebuilding market confidence.

ANBOUND's research team believes that in order to attract more funds into the capital market, it is crucial that we give sufficient time to the capital market to make recovery as this allows the investors to identify risk while discovering potential opportunities.

A number of conditions including the registration-based initial public offering are far from mature and the imposition of such conditions might risk causing another round of market turmoil and affect the market confidence on the reform measures, it seems like the government is already reconsidering the timing for the introduction of these measures and the government might have decided to put these measures on hold.