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​928 companies listed in new third board innovation layer

Xinhua Financein www.cfbond.com
2018-05-18 11:10

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The National Equities Exchange and Quotations (NEEQ), also known as the "new third board," selected 928 companies for its innovation layer, as reported in the Shanghai Securities News on Thursday.

This stratification is the first market stratification adjustments based on new stratification methods. Eight hundred and four companies out of 928 have remained in the innovation layer, and 124 companies are elevated from the base layer into the innovation layer.

By May 16, the total number of companies on the board reached 11,345. The debuted companies in the innovation layer are weighted at 8.2 percent of the entire listed companies.

This market stratification is the NEEQ's fundamental system, which started in 2016. There were 953 and 1,329 NEEQ companies selected for the innovation layer in 2016 and 2017, respectively.

The new stratification methods made modifications to the access requirements and maintenance requirements for the innovation layer, the number of companies on the board has decreased in 2018, but the overall quality has improved, which reached the expectation of the new stratification methods.

The new stratification methods moderately reduced the profitability index and improved the requirements for profit stability and revenue scale of listed companies. Thus the financial conditions of the companies in the innovation layer have obviously been enhanced.

After the stratification adjustments in 2018, companies in the NEEQ innovation layer earned an average operating revenue of RMB 530 million and an average net profit of RMB 28.75 million, which had increased by RMB 140 million and RMB 4.22 million respectively, when compared with the numbers in 2017.

Also, the new stratification methods requested that there should be at least 50 qualified investors for access to and maintenance in the innovation layer, which helped companies in the innovation layer to improve their level through publicity, and the liquidity and market value of their stocks.

Finally, the new stratification methods will replace the maintenance requirements for the innovation layer with legal compliance conditions and basic financial bottom line requirements. As a result, the overall stability of the companies in the innovation layer has improved, and most companies with healthy financial conditions will remain in the innovation layer.
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