(Yicai Global) Dec. 27 -- The China Securities Regulatory Commission and the Shanghai Stock Exchange are prioritizing the set up of a registration-based science and technology innovation board that President Xi Jinping first publicized last month.
Establishing the board in Shanghai is the CSRC's top concern for next year, it said in a statement released after a Dec. 24 meeting. The day after, the SSE met to confirm eight major tasks for 2019, with the new trading venue topping its list, the bourse said in a statement.
The Central Economic Working Conference, an annual gathering in Beijing that sets China's economic agenda for the year ahead, last week proposed the board and its pilot registration system start as soon as possible. The SSE has pledged to speed up the formulation of business rules and supporting regulations. It is going all out to open the board in the first half of next year, according to Wei Gang, general manager of the SSE's Offering and Listing Center.
The board is very likely to be unveiled in the first half, Securities Daily reported today, citing an insider at an unidentified brokerage.
Market players and local governments are gearing up for trading on the new venue, with many beginning to select backup firms and conduct due diligence, the report said. Local governments have offered incentives to support the development of sci-tech firms, it added.
At its meeting, the CSRC also said it would unveil the board and its pilot registration system for listed firms as soon as possible and promote reform of basic systems including issues, listings, information disclosures, trading, delistings and administration of investor eligibility, to better serve sci-tech innovation and high-quality economic development.
The SSE will spare no effort to promote to start the venue, speed up its formulation of business rules and supporting regulations, strive to build a vital and dynamic sci-tech innovation market, and make the registration system a typical sample that can be replicated and promoted, the bourse said.
China will experiment with a registration system for listed firms, support Shanghai in cementing its place as a global hub for finance, science and innovation, and steadily improve basic capital market institutions, Xi pledged at the opening of the China International Import Expo on Nov. 5. Various agencies began to push ahead with the task soon afterwards.
Editor: Ben Armour