(Yicai Global) Nov. 22 -- Shanghai's economy commission is drafting up listing standards and singling out recommended companies to go public on the local bourse's new science and tech board.
The Shanghai Municipal Commission of Economy and Informatization sent out notices to relevant departments to prepare the Shanghai Stock Exchange for trials of the new registration system and to suggest companies that would be suitable to list, the Securities Times reported after gaining exclusive access to the document.
Whether or not the selected companies will be an indication of what the listing thresholds is yet to be seen, the report added, saying the reporter did not actually see any requirements.
The standards used by the SMCEI to pick companies are not actually the same as the ones that will be used as requirements for the science and tech board -- they are just reference points for Shanghai's high-quality tech firms, one investment banker said. That was backed up by a source close to the Shanghai exchange, who added that no requirements exist yet and they are still in the works.
There are 1,699 companies consulting 93 investment banks for initial public offerings in China, and 729 of them are for technology-based companies engaged in equipment, robotics, integrated circuits, software, medicine, new materials and new energy, data from Securities Times shows. How many of them will be eligible to list on the new board remains to be seen.
Editor: James Boynton