China to publish rules for new tech board next month

SHANGHAI: China will likely publish rules for Shanghai’s planned “technology innovation board” next month and will launch the new tech board before June, the 21st Century Business Herald reported yesterday, citing unidentified sources close to the Shanghai Stock Exchange.

Companies with core technologies could start submitting listing applications as soon as March or April, but firms with unproven technologies such as blockchain, or in traditional industries such as finance or real estate would be disqualified for listing on the new board, the newspaper added.

President Xi Jinping unveiled plans for the technology innovation board early last month.

The board will adopt a looselyregulated mechanism for initial public offerings, potentially competing with Hong Kong, or even New York.

According to the newspaper, applicants will not be required to be profitable, but must meet certain threshold in terms of revenue and capitalisation.

The new board may adopt a more flexible trading system, granting stocks more room to rise or fall, and allowing investors to sell shares on the same day of purchase, according to the article.

Currently, Chinese stocks are allowed to rise or fall a maximum of 10 per cent on a single trading day, and investors cannot sell shares on the day of purchase.