(Yicai) Oct. 15 -- The Beijing Stock Exchange has set new rules for firms planning to list, specifying that they must meet specific criteria on technological innovation, research and development, or industry standards, with the aim of fostering innovation and solidifying its position as a key platform for China’s tech-driven economic growth.

The bourse established the quantifiable metrics yesterday, according to an internal document seen by Yicai. Under the new rules, companies planning to go public on the BSE need to satisfy at least one of three criteria.

First, applicants should meet at least one of three R&D investment thresholds for the three years prior to their initial public offering: R&D investment equal to more than 3 percent of operating revenue at profitable firms; R&D investment averaging more than CNY10 million (USD1.4 million) a year; or a compound annual R&D investment growth rate of over 10 percent.

Firms can also qualify for an IPO if their latest annual spending on R&D exceeded CNY15 million and their R&D staff accounted for more than 10 percent of the total headcount.

Second, applicants need to have more than three independently or jointly developed type-1 intellectual property rights or more than 50 software copyrights that have been successfully used in their business operations.

Third, they should have contributed to the development of at least two international, national, or industry standards in their respective fields.

Sponsors must thoroughly assess whether their IPO applicants meet the requirements, the document noted.

The BSE is the youngest and smallest of the Chinese mainland stock exchanges and forms part of the country’s broader strategy to support small and medium-sized enterprises, especially those with high-tech capabilities. It was launched in 2021 to complement the Shanghai and Shenzhen bourses, providing a platform for smaller businesses to raise capital and grow.

As of June 30, the BSE had 249 listed companies, of which over 92 percent were high-tech firms, and 48 percent had proprietary high-tech capabilities. BSE-listed firms spent an average of CNY31.8 million on R&D over the past three years, with R&D outlays equal to 6 percent of operating revenue at profitable firms.

Editors: Tang Shihua, Futura Costaglione