(Yicai Global) June 10 -- Companies listed on the Shanghai Stock Exchange’s Nasdaq-style Star Market, which has been a pilot platform for a number of more relaxed policies, have maintained the required standards and have withstood market tests, the chairman of the China Securities Regulatory Commission said today.

The firms listed on the Star Market continue to conform well in terms of corporate governance and information disclosure indicating that the overall effect of the reforms of the Star Market mechanism is good and in line with expectations, Yi Huiman said at the Lujiazui Forum 2021 today.

In the nearly two years since the bourse was launched, some innovative policies have been tried and tested for the main stock market bodies to copy and promote, Yi said. These include a registration-based initial public offering system that allows companies to list much more quickly than through the previous approval-based model by regulators that could take months, even years. It has also been granted a daily trading limit of 20 percent, twice that of the main bourses.

The Star Market had raised CNY361.5 billion (USD56.6 billion) through IPOs as of the end of May, over 40 percent of the amount raised by the Shenzhen and Shanghai stock markets in the same period, Yi said.

The cumulative net profit of companies listed on the Star Market, many of which are engaged in integrated circuits, biomedicine and high-end equipment manufacturing, grew 59 percent year on year, much higher than the overall market average, Yi said.

The Star Market has been operating smoothly since it opened. The level of market liquidity is adapted to its sector positioning, investor suitability and trading system arrangements, Yi added.

Editors: Tang Shihua, Kim Taylor