Shanghai moves to boost key tech sectors amid trade war, to green light first three listings on new Nasdaq-style board

The Shanghai Stock Exchange is poised to approve the first three listings on the city’s upcoming Nasdaq-style Technology Innovation Board, accelerating China’s pace of support for technology companies amid its escalating trade war with the United States.

The initial public offering (IPO) applications of Shenzhen ChipScreen Biosciences, Anji Microelectronics (Shanghai) and Suzhou Tztek Technology will be heard on June 5, the exchange said in a statement after the market close on Monday, which also suggests the launch of the new board itself is nearing.

“The first three companies, following rounds of examinations by exchange officials over the past two months, are set to secure a nod to launch IPOs,” said Ding Haifeng, a consultant with Shanghai Integrity Financial Consulting. “The hearing date in early June echoes speculation the new market will debut in the middle of this year.”

The three IPO hopefuls are in the fields of semiconductors, biotechnology and artificial intelligence, key areas in which Beijing wants to create China’s own world-class players. These companies are among about 110 applicants looking to list on the eagerly anticipated board.

Ordered into existence by Chinese President Xi Jinping in November to support domestic technology companies by easing access to capital, the board will for the first time allow unprofitable and foreign funded companies to list in mainland China.

The China Securities Regulatory Commission is yet to unveil an exact date for the board’s debut, but it is believed the launch date will be announced soon after the IPO hearings in the coming weeks.