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Losing Money No Longer Barrier to China IPO

After unveiling a pilot program designed to bring big tech firms back to mainland exchanges, China’s securities regulator is clearing hurdles to going public for unicorns and other companies that have yet to make a profit. Photo: VCG
After unveiling a pilot program designed to bring big tech firms back to mainland exchanges, China’s securities regulator is clearing hurdles to going public for unicorns and other companies that have yet to make a profit. Photo: VCG

Unprofitable Chinese companies will for the first time be able to list on domestic stock markets under new government proposals to encourage innovative businesses in high-tech and emerging industries to raise money on mainland bourses.

The China Securities Regulatory Commission (CSRC) is relaxing rules that stipulate companies who want to launch initial public offerings (IPOs) on the two main exchanges and the ChiNext startup board must be profitable or have a history of profitability, according to revised listing criteria released by the watchdog (link in Chinese) on Friday.

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