Groundbreaking securities exchange expected to demonstrate major reforms
The preparation work for China's groundbreaking science and technology innovation board is in full swing, with more supporting measures in the pipeline and detailed rules to be announced soon, China's securities watchdog and the Shanghai bourse said on Wednesday.
"On the whole, related work for the new board has gone rather smoothly. And we will continue to make solid and meticulous preparations to launch this major reform in an effective way," said Yi Huiman, the newly appointed chairman of China Securities Regulatory Commission, when convening his first news conference on Wednesday.
President Xi Jinping said in Shanghai in November that China will launch a science and technology innovation board at the Shanghai Stock Exchange, which will adopt a registration-based system. Draft regulations and rules were released on Jan 30.
Detailed rules of the new board will soon be announced and take effect, after necessary modifications in line with public opinion that was solicited based on the draft version, said Huang Hongyuan, president of the Shanghai Stock Exchange.
"We will receive listing applications after the regulations are available," Huang said. How soon the first company will go public on the new board depends on different factors, including the preparatory progress of the companies and their investment banks, he added.
Enterprises qualified and willing to go public on the new board are mainly concentrated in such areas as information technology, biomedicine, high-end manufacturing and new materials, Huang said, adding that the bourse has done lots of research on them.
"They feature relatively high research and development expenditures, and rather good growth prospects."