Shanghai’s tech board approves first IPOs as Bannon talks of barring Chinese firms from US capital markets
- Former White House adviser Steve Bannon recently called for Chinese companies to be completely excluded from US capital markets
The Shanghai Stock Exchange has granted approvals to the first three firms applying to raise funds on its new technology board, a major step towards the debut of mainland China’s own Nasdaq-style exchange.
Shenzhen ChipScreen Biosciences, Anji Microelectronics (Shanghai) and Suzhou Tztek Technology went through initial public offering (IPO) hearings on Wednesday, less than three months after they submitted their applications.
The short waiting time is the latest sign that Beijing is ramping up support for home-grown technology firms as the US-China trade war increasingly stretches into the sector.
The three firms, which work in the fields of semiconductors, biotechnology and artificial intelligence, are looking to raise 2.1 billion yuan (US$304 million) between them.
They are subject to a final approval from the China Securities Regulatory Commission before they start bookbuilding. This is widely anticipated to take place in one month’s time.
“Solid firms that comply with the information disclosure rules [will] emerge to be the top beneficiaries of the new market,” said Ivan Li, an asset manager with hedge fund Loyal Wealth Management. “The first batch of approvals will open a floodgate for dozens of promising start-ups to raise funds on the new board.”