A stock screen in Shanghai Stock Exchange. [File Photo: eastmoney.com]

China is introducing a registration-based system for initial public offerings.

China Securities Regulatory Commission will roll out details and solicit public opinions within two years.

The regulator plans to shift IPO approval powers to the two main bourses, the Shanghai Composite and Shenzhen component indexes.

The new IPO system will emphasize information disclosure rather than corporate profitability and will let the market play a bigger role in determining share prices.

Under the new system, the securities regulator will also focus on supervision.

The draft plan still needs to be authorized by the country's legislature, as it involves adjustment of the current securities law.

More than 600 companies here in China had sought regulatory approval for their IPOs as of this Tuesday.

For more on the new IPO system, CRI’s Shane Bigham spoke with Cao Can, CRI's Financial Commentator.