Caixin Global – Latest China News & Headlines

Home >

By Fran Wang / Dec 10, 2018 03:08 PM / Economy

China's proposed high-tech stock board will lower the profitability requirements for candidate companies but will not directly accept biotech firms that have not had any income, a source close to the Shanghai Stock Exchange has revealed amid scant early details.

Draft rules for the upcoming trial of the board's registration-based IPO system have been completed but are still pending changes, the source said. These comments show it is likely that money-losing startups, who are generally barred from listing on the mainland, would be allowed to list, and also provide a rare early look at IPO reforms that were announced in early November but have been kept under wraps.

The creation of a new high-tech trading venue, possibly to be modeled on the wildly successful Nasdaq Stock Exchange in the U.S., is meant to boost business confidence amid slowing growth and mounting U.S. tariffs.

Support independent journalism from China. Subscribe to Caixin Global.

Share this article
Open WeChat and scan the QR code