Chinese securities companies and venture capital firms are busy gearing up for the launch of the science and innovation board, said a report of China Securities Journal on Wednesday.
For the past few days, the Shanghai Stock Exchange (SSE) has been seeking advice from China’s securities dealers on the formulation of rules for the science and innovation board, which is set to become a venue for this country’s high-tech and innovative companies to float and trade their shares.
“The SSE sent us a letter asking for our opinion on issues related to the science and innovation board, to which we have made a reply,” a source from a southern China-based securities firm told the journal.
Another large securities broker has been busy with the related preparation work, selecting floatation candidates, training its staff and setting out detailed internal operation rules, according to an investment professional.
A senior manager of central China-based Sinolink Securities Co., Ltd. said Sinolink is already screening its existing projects for promising ones that may meet the listing requirements of the new board.
Venture capital companies are also actively on the move. A well-known venture capital firm confirmed that it had started conferring with China’s leading securities dealers and would identify qualified projects once the detailed rules were out.
This upcoming registration-based board is expected to put more stringent requirements on regulators, brokers and applicants for initial public offerings (IPOs).
The registration-based system means that it will be the brokerage firms that make substantial judgments on the IPO applicants and this calls for a higher level of competency and working ethics in these brokers, said the above investment professional.
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