BEIJING, May 9 -- The China Securities Regulatory Commission (CSRC) will allow firms to resume capital raising on domestic stock exchanges from yesterday, ending a year-long ban and paving the way for companies like Air China to return to domestic exchanges.

    CSRC made the announcement on its Web site after holding public consultations with market players to seek approval for a set of rules to govern the resumption through public consultations.

    The sequence for the resumption will be private placements, rights shares and then initial public offerings, the notice said, but it did not give an exact timetable.

    Rules for companies to list will also be tightened, with stronger information disclosure demanded and preconditions for private placements and rights issues.

    Investors have complained that Chinese investors are deprived of the right to enjoy some of the fruits of China's booming economy because quality firms have flocked to more transparent and liquid markets abroad and in Hong Kong.

    Analysts say Air China Co. Ltd., the country's most valuable airline, was likely to be among the first to take advantage of the new rules.

    The mainland benchmark stock index is up nearly 30 percent this year, after a four-year slump triggered by fears of a possible deluge of new shares from the proposed flotation of government holdings in listed companies.

    But the regulator has said the reforms to convert US$250 billion in nontradable shares in listed companies into regular traded shares had been successful and the time was right to lift the May 2005 ban on stock sales.

    (Source: Shenzhen Daily/ Agencies)