Investors had their first glimpse into how China’s new hi-tech board on the Shanghai Stock Exchange will function on Wednesday after regulators unveiled detailed listing requirements and trading rules that show it will incorporate innovative approaches already adapted by bourses in Hong Kong and New York.
Beijing will allow unprofitable tech firms, including pre-revenue biotech start-ups, to list on its Technology Innovation Board, according to statements published by the China Securities Regulatory Commission and the Shanghai Stock Exchange on Wednesday evening.
Foreign-funded mainland companies using the variable interest entities (VIE) structures are also welcome through the issuance of Chinese depositary receipts (CDR), giving the Shanghai bourse an edge in attracting promising companies looking to raise capital for future growth.
Companies with a dual-class shareholding structure will also be allowed to conduct fundraising on the much anticipated trading venue.
Read the full article in South China Morning Post