(Yicai Global) Nov.26 -- Shanghai's local authorities have started a new information gathering initiative to identify candidate startups for listing on the city's upcoming tech innovation board.
The local government has sent out forms out to startups to obtain relevant information, industry insiders revealed to Yicai Global. The sector still awaits concrete requirements for listing on the board.
Shanghai aims to attract new economy players to list on the high-tech stock trading board through the city's stock exchange, which will feature less stringent listing requirements compared with traditional floats.
The forms sent out include sections on main business areas, revenue, net profit, research and development investment ratio, the number of licensed patents and sector ranking. It also includes two exclusive requirements for would-be listers. The first of which is whether the firm holds an advantageous position in the domestic or global sector and the second does not require profitability but a certain revenue level.
The initiative is expected to help the new tech board formulate specific standards for listing, thereby facilitating a smooth launch, Qian Qimin, co-director of financing research at SWS Research, told Yicai Global.
"It is quite normal for the municipal government to issue such forms to seek information and solicit opinions", said Gu Jie, chief executive of Shanghai-based tech firm Fourier Intelligence.
Companies should continue to focus on their business as well as the research and development since the threshold and the specific system for listing in the tech innovation board have not yet been made public, Gu added.
The tech innovation board is quite attractive for well-operated tier one companies, which can gain more practical benefits despite their irregular growth, said Cai Tianyi, founder of artificial intelligence startup Versa, adding that he looks forward to the issuance of detailed regulations in the future.
The Shanghai government's support for well-run small and medium-sized companies started a long time ago and has been developing, Cai said, adding that "some friends of mine who have started their own businesses enjoy preferential local policies at different degrees."