The transformation to IPO registration system from the current approval-based IPO system should be based on market rules, said Yu Minhong, the founder of China's education company, New Oriental, before he attended two sessions on Sunday.

"The IPO registration system should be gradually unfolded to different bourses, I believe it's better not to let all bourses implement IPO registration system altogether," Yu said. "It's better to be piloted in one bourse first, summarize cases and experiences from it, and then expand to others."

China's top securities regulator on Friday night released regulations on the science and technology innovation board, which will pilot registration-based IPO system, a major reform step for China's capital market.

The regulations, to be implemented on a trial basis, took effect on March 1, according to the China Securities Regulatory Commission (CSRC).

Under the pilot registration system, eligible companies can become listed by filing required documents. Currently, new shares of the A-share market are subject to approval from the securities watchdog.

Yu also suggested the related organizations need to step up their regulations to companies and entrepreneurs, ensure lawful and transparent behavior in companies' management and auditing conducted by accounting firms, and set up punishment mechanism if there is any misconduct.

Yu shared an example of many entrepreneurs putting  stocks in banks as mortgages, yet the money earned was not invested back into their own companies. Such practices could cause the entrepreneurs to lose control over their own companies. Companies in turn also lose their means for a continuous development.

"Going public is to help the companies' development, it's a start for a company," Yu said. 

(with input from Xinhua)