Big data, aerospace technology, cloud computing and biomedical companies are among the top listed companies in China's upcoming Science and technology innovation board, the China Securities Journal reported on Monday.
The Science and technology innovation board at the Shanghai Stock Exchange (SSE) was launched on Nov. 5 this year by the Chinese government to encourage fundraising activities by small and medium high-tech companies.
The government of Shanghai municipality has recently placed conditions on potential companies. The first group of companies recommended is supposed to have leading footprints in their respective fields of specialties. Companies are not restricted solely on earnings, but a certain revenue scale is required. Apart from their earnings reports, the proportion of investments on R&D against their revenues, number of patents, and rankings in their respective sectors are set to be underscored.
There are over 600 companies being asked by investors about their plans for listing on the new board. For most of these companies, their answers were vague "as the threshold and detailed rules had not been nailed down yet."
Analysts from China's investment banks said the targeted companies were likely focused in areas of energy-saving and environmental protection, information, biology, new energy vehicles (NEVs), equipment manufacturing, and new materials. And the first group of companies would be shortlisted to around 20 to 30 companies.
"The companies should be in line with the nation's strategy and have leading innovative technologies in the world, such as the Sense Time, among others," analysts said.
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