(Yicai Global) March 18 -- China's new science and technology innovation board will officially start taking in initial public offering applications this week with hundreds of potential share issuers.
The Shanghai Stock Exchange has finished testing over the weekend and those documents that were submitted are treated as prospectuses, an official at the bourse told Yicai Global.
Some 300 to 400 companies among the ones that Chinese brokerages have been counseling for the purpose meet the requirements to get listed on the board, Qiu Xiang, strategy analyst at CITIC Securities, said earlier this month in a report from the Shenzhen-based company.
The SSE convened chiefs of nearly 100 brokerage firms on March 16 to discuss preparations for the review system launch, emphasizing responsibility and risk prevention. Participants from the China Securities Regulatory Commission and the Securities Association of China also attended the event.
The new board is expected to become a faster funding channel for target companies, Qiu said. The sci-tech innovation board aims to make it easier for Chinese tech firms to go public in Shanghai and it is scheduled to be launched in the first half. The review process will take about six months, which is much less than at the existent boards.
Member agencies must strictly monitor the application procedure and supervise IPO hopefuls to achieve safe operation, the SSE said at the meeting.
Brokerages that wish to facilitate IPOs on the new market must check that applicants fill information disclosure requirements but they are not required to flag down prospectuses with unfair or unreasonable pricing conditions.
Editor: Emmi Laine