Eight more companies given go-ahead to list on Shanghai’s new tech board
- Pace of clearance shows ‘everything is on the right track’, says expert
The Shanghai Stock Exchange on Wednesday accepted another eight initial public offering (IPO) applications from companies aiming to list on its upcoming Technology Innovation Board. The board, ordered by Chinese President Xi Jinping, is expected to launch by the middle of the year.
The companies seeking to raise funds on the Nasdaq-style market fall into the categories of basic science, biotechnology, robotics, new material, aerospace and chip making, with no e-commerce or internet-related firms in the running.
“The pace of acknowledging IPO applications shows that everything is on the right track, as securities regulators hope to launch the technology board sooner rather than later,” said Ding Haifeng, a consultant with Shanghai-based Integrity Financial Consulting. “The firms also add to evidence that the Chinese government wants to improve the country’s research and development capabilities in these real hi-tech industries.”
The board was announced by Xi in November, and Beijing is touting it as evidence of deepened reforms in China’s securities market.
China scraps valuation limit to kick-start Xi Jinping’s technology board for home-grown companies to raise capital
The new board will, for the first time, let unprofitable companies raise funds on a mainland China stock exchange. The new market will also embark on a registration-based system to approve listings issuances.