(Yicai) June 21 -- The Shanghai and Shenzhen stock exchanges have accepted their first initial public offering applications this year following a hiatus due to the introduction of new stricter capital market regulations in China.

The Shanghai Stock Exchange accepted yesterday the application of Taijin New Energy & Materials Sci-Tech to list on its Nasdaq-style Star Market, while the Shenzhen bourse accepted that of China National Uranium on the same day.

Taijin New Energy plans to raise CNY1.5 billion (USD206.6 million), according to the Xi'an-based company's prospectus. The proceeds will be used to develop green electrolysis equipment and high-performance electrode materials.

Beijing-based National Uranium aims to raise CNY4.1 billion and use the funds for its uranium mining projects and the comprehensive utilization of associated mineral resources, its prospectus showed.

The Shanghai and Shenzhen bourses' accepting new IPO applications sends a positive signal, Tian Lihui, dean of Nankai University's Institute of Financial Development, told Yicai. The move indicates improving market activity, bettering the fundraising environment for companies, and likely stimulating firms' IPO enthusiasm, Tian added.

According to China's listing mechanism, the reviewing process will begin after the bourse accepts the IPO applications, with the companies approved to go public after several rounds of inquiries and passing a listing assessment.

Only the Beijing Stock Exchange had accepted IPO applications in the Chinese mainland since the start of this year, accepting one in January and another in March. Due to this, nearly 230 companies withdrew their applications from the capital market.

China is strengthening regulations targeting its capital market, with the country's cabinet introducing new rules this April aimed at raising the listing standards for the main boards and the Growth Enterprise Market and expanding on-site inspections for the companies and related intermediaries under review. Following their introduction, the Shanghai and Shenzhen bourses halted IPO reviews until the middle of last month.

However, the new regulations trend has shown signs of change recently. The capital market's support targeting technological innovation should be enhanced, Wu Qing, chairman of the China Securities Regulatory Commission, said on June 19 at the Lujiazui Forum in Shanghai.

In a policy document released on the same day, China's top securities regulator announced new measures to deepen the reform of Shanghai's Star Market in a bid to bolster the Nasdaq-style board's role in serving sci-tech companies. 

The eight measures include prioritizing the listing of companies that master key core technologies in new industries, business formats, and technologies, the CSRC noted. The regulator will also refine the system for identifying such firms and support the floatation of high-quality tech ventures that are yet to turn a profit, it said.

Editors: Dou Shicong, Martin Kadiev