(Yicai Global) Jan. 28 -- Shanghai's new science and tech innovation board will have a more relaxed listing rule on corporate profitability, but will not compromise on those for standard operations, corporate management, information disclosure and other issues, according to the city's securities regulator.

The board's introduction at the Shanghai Stock Exchange and the pilot registration-based initial public offering system are going smoothly, Shanghai Television's Knews reported today, citing Yan Bojin, head of the China Securities Regulatory Commission's local branch.

President Xi Jinping said in November that the SSE would be setting up a board for small and medium-sized innovative companies, along with the country's first pilot of a registration-based scheme. The central reform commission ratified the Science and Technology Innovation Board's foundation at a meeting on Jan. 23.

The commission has passed the general implementation plan and the CSRC will release detailed regulations soon, Yan told the second session of the 15th Shanghai Municipal People's Congress.

Compared with the current approval-based system, changes only take place in the review focus of the new system's procedures without lowering any of its standards, and even requires more for publicity and transparency, Yan said.

The sci-tech board will launch in the first half of this year at the earliest, according to many brokerages, helping innovative Chinese companies secure additional financial support while attracting more foreign funds to the mainland market.

Under the pilot registration system, regulators will only review the authenticity of information disclosed by the stock issuers rather than appraise them.