(Yicai  Global) Dec. 4 -- Companies looking to list on Shanghai's upcoming  science and technology innovation board will require less strict  financial performance requirements compared with those on the city's  main index, according to an industry insider.

Listings on the new tech board require that firms meet three criteria regarding performance, which are  also more stringent than flotations on the growth enterprise board,  National Equities Exchange and Quotations big data platform Wabei  reported the insider as saying. Unveiled by President Xi last month, the  board aims to attract listings from new economy players through the  city's stock exchange.

Would-be  listers must have achieved at least CNY50 million (USD7.3 million) in  net profit over a period of two straight years, or CNY200 million in the  most recent year. This compares to CNY30 million over three years and  CNY50 million in cash flow, or CNY300 million in operating revenue, for  main board listings. 

For  listings on the GE index, firms need to have made CNY10 million in  profit over the preceding two years, including CNY5 million in the most  recent year. They also require revenue of at least CNY50 million in the  past two years and a growth rate of at least 30 percent, making new tech  board flotations more stringent.

Firms  looking to list on the new tech board must also meet requirements in  line with China's national strategies, have key technologies and be  highly recognized in the market. They should be from high-tech and  emerging sectors including internet, big data, cloud computing,  artificial intelligence, software and integrated circuits, high-end  equipment manufacturing, biopharmaceuticals, new materials and new  energy.

The  second financial requirement for would-be listers is earnings in excess  of CNY200 million in the most recent year as well as a research and  development investment margin over three years of at least 10 percent.  The third condition is a market value of at least CNY2 billion (USD291.3  million) or, alternatively, business revenue in the past year of over  CNY300 million.

The  insider also provided details of criteria regarding three more  requirements related to company operations. They must be limited  liability companies and work in line with regulatory bodies. Listings  also require three years of standard audit reports with unqualified  opinions from a certified public accountant, while senior company  figures should have a clean criminal record for the past three years. 

The  Shanghai Stock Exchange has completed work on the organizational  structure for the new tech board, the insider said, adding that  registration and regulatory departments have been set up. 

Editor: William Clegg