China takes a step closer to unveiling a new stock market inspired by Nasdaq
- The Shanghai exchange is likely to begin reviewing initial public offerings by applicants as early as March
- Rules for the new exchange should be ready in January
The technology innovation board at the Shanghai Stock Exchange, the latest effort by Beijing to create a Chinese version of Nasdaq, is expected to debut in the middle of 2019 with unprofitable companies likely to be allowed to raise funds.
But only those companies who have core technologies such as computing, software design and pharmaceutical drug development will be welcome to the high-profile board as China scouts for future profit stars to sustain its economic growth.
According to two asset managers who were briefed on the preparations for the new market, the Shanghai exchange is likely to begin reviewing initial public offerings (IPOs) by applicants in as early as March next year, while letting the first batch of prospective technology firms list on the board in June.
The Shanghai bourse is accelerating its pace of drafting rules for the new board and plans to publish them in January.
The plan to create the new board was announced by Chinese President Xi Jinping in early November, as part of the efforts to bolster Shanghai’s role as an international financial centre.