Shanghai Prompts Small Firms to Go Public on New Sci-Tech Board
Xu Wei
/SOURCE : yicai
Shanghai Prompts Small Firms to Go Public on New Sci-Tech Board

(Yicai Global) June 11 --  Shanghai's government has stepped up its measures to support privately  owned enterprises' financing needs, encouraging them to get listed on  the science and technology innovation board that may be launched anytime  now. 

Shanghai will support  local private tech firms, even small ones, to go public on the sci-tech  board, as well as other mainland markets, according to a document  published by the city's administration today. 

The upcoming sci-tech  board strives to ease listing requirements for Chinese tech companies.  The technical system is ready for launch, China Daily reported today,  citing Li Chao, vice-chairman at the China Securities Regulatory  Commission.

Shanghai's initiatives aim  to provide equal financing opportunities for privately owned firms, set  reasonable maturities for loans, as well as support mergers and  acquisitions, bond issuance, refinancing and new credit products.

The move involves offering  CNY20 billion (USD2.9 billion) bank and secured loans to small and  mid-sized private firms. The city will offer at least CNY10 billion in  refinancing for small and micro-sized private firms in key fields such  as technical innovation and advanced manufacturing. It aims to provide a  CNY15 billion rediscount for these companies.

Shanghai will add CNY1  billion in fiscal funds annually for three straight years since this  year to supplement venture capital and angel investments. It will also  step up efforts to form equity investment funds worth CNY100 billion.

The new initiatives also  allow insurance companies to provide long-term low-cost financial  support for qualified private companies by investing in the latter's  equity, debt, and asset management programs.

Editor: Emmi Laine 

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Keywords: Shanghai , Finance , Private enterprise