China Daily Global Weekly
IPO reform launched on startup board
China has launched market-based initial public offering reform on the innovation-focused startup board of the Shenzhen Stock Exchange, a major step to let market forces play a greater role in new share sales and help channel much-needed investment into the country’s innovative firms.
The reform was endorsed by the country’s top leadership at a meeting of the Central Committee for Deepening Overall Reform on April 27, presided over by Xi Jinping, general secretary of the Communist Party of China Central Committee. Xi approved the decision to carry out the registration-based IPO system on the ChiNext board, which Chinese regulators hope will develop into China’s version of the NASDAQ and a cradle of future Chinese technology giants.
The move to deepen China’s capital market reform came as the country battles the impact of the COVID-19 epidemic.