(Yicai Global) March 4 -- The China Securities Regulatory Commission has disclosed listing rules and regulations for the new science and technology innovation board designed to help emerging tech firms raise capital on the Shanghai Stock Exchange.
The board will need to decide whether to accept a listing application within five working days of receiving a submission for a public offering, according to a policy document published by the CSRC on March 1. The securities regulator will then decide whether to approve the listing within 20 working days from receipt of review opinions and other documents from the bourse.
The aim is to make capital markets more inclusive for the real economy and serve industry leaders with core technologies and great prospects, CSRC Chairman Yi Huiman said last week.
The CSRC will also accept and review applications online to optimize the process for itself and applying firms. It will publish progressions at key stages for public viewing.
Under standard bourse rules, the CSRC reviews applications via a complicated and time-consuming process and has strict rules governing the financial conditions of companies eligible to list. This, along with the rules against the weighted-voting rights structure adopted by many firms, has typically forced emerging tech companies to go public overseas.
The Shanghai Stock Exchange will review applications for mergers, acquisitions and restructuring at companies on the new board, based on rules set by the CSRC and board requirements on industry and technical expertise. Any major changes should also enhance the competitiveness of the listed company's primary business, per the CSRC document.
When the first company will go public on the sci-tech board is hard to predict, SSE Chairman Huang Hongyuan said last week, adding that the exchange would start accepting applications once the listing rules were published.
Editor: James Boynton