The country's securities regulator said on August 19 that it will launch the employee stock ownership plan for listed companies at a later time after further improving the draft regulation.

China Securities Regulatory Commission said that it is reviewing feedback on the draft regulation on the shareholding scheme, which was issued to solicit public opinion on August 5.

The plan, which allows listed firms to buy their own stocks on the secondary market through an assets management agency with a designated portion of their employees' cash compensation, is aimed at allowing more staff to benefit from stock ownership.

Employees of listed companies can participate in the plan on a voluntary basis and be entitled to shares according to a distribution agreement.

The employee stock ownership plan, which will help increase the efficiency and comprehensive strength of a listed company, is a widely employed mechanism in mature securities markets. China had previously introduced plans that encouraged only senior executives to own stakes in listed companies.