Shanghai unveils first applicants for Nasdaq-style board
shanghai — The Shanghai Stock Exchange took a major step toward launching its hotly-anticipated Nasdaq-style technology board, announcing on Friday that it had accepted listing applications from nine firms, in sectors from chip making to new energy technology.
The announcement on the exchange’s website means share trading will start on the Science and Technology Innovation board as soon as June, since the exchange will take three months to review applications.
The new tech board, announced by President Xi Jinping in November, marks a radical shift from the current lengthy and cumbersome process for initial public offerings.
The board’s registration-based listing procedure will cut regulatory red tape and allow listings by startups that have yet to turn a profit. The new board is viewed as a move by Beijing to counter US curbs on China’s technology advances, and as part of efforts to build Shanghai into an international financial hub.
The exchange on Friday urged market participants, including issuers and underwriters, to work together to ensure a good start, and the long-term health of the board.
Among the nine applicants are Ningbo Ronbay New Energy Technology, Wuhan Keqian Biology, Ankon Technology (Wuhan) and HeJian Technology (Suzhou) .
Average market capitalisation of the nine applicants, which also include Guangdong Lyric Robot Automation and Jiangsu Beiren Robot System, is expected to be 7.28 billion yuan ($1.08 billion), the exchange said. —