BEIJING, May 22 (Xinhua) -- The China Securities Regulatory Commission (CSRC) said Friday it would end a de facto suspension of initial public offerings (IPOs) on the Shanghai and Shenzhen stock exchanges as of June 5.

    The CSRC released draft guidelines that said the quotation system for new issues should be revised so that issue prices faithfully reflect market demand, and lead underwriters should take steps to avoid "unreasonably" high prices.

    Under the new rules, stock subscribers need to use either the online or off-line subscription system, but not both, to purchase new stocks. Institutional investors used to enjoy the privilege of subscribing through both systems, while retail investors could use only the off-line system.

    The new guidelines aim to improve the price discovery function of the stock market, and help retail investors subscribe to newly issued stocks, said the CSRC.

    It would also increase warning notices in the process of existing market risks.

    Public comments on the draft guidelines will be sought up to June 5. The draft guidelines will be revised at an unspecified date after IPOs resume.

    The CSRC effectively suspended all new stock issues last September, as it halted approvals. Since then the stock market has plunged 63.9 percent from its peak 6124.04 in October 2007.