The long-term imbalance of capital market services and docking of small and medium-sized enterprises in the nation�s eastern and western regions has finally caught the eye of regulators.

The China Securities Regulatory Commission has announced preferential policies under which it will prioritize IPO applications from companies in western China, while the nation�s two stock exchanges will arrange IPOs applications accordingly.

The Shenzhen Stock Exchange has set up a special working group in an attempt to promote the listing process in western regions.

"This will accelerate new share issues from companies in western China and support the development of the regional economy," a senior CSRC official said at a news conference.

China�s western regions pale in comparison with central and eastern regions in the numbers of enterprises both listed and to be listed.

According to Zero2IPO Research Center, only 66 out of the 687 IPOs (9.6 percent) in the regulator�s listing queue are from western regions.

A lack of professional services, mainly brokers and other intermediary agencies such as legal and accounting firms has been noted. The preferential policies aim to attract more securities companies and financial institutions to open branches there, as well as boost competition.

By Jialin Tang

Source: http://www.morningwhistle.com/html/2012/FinanceMarkets_0620/212690.html