Policy

China adopts new plan, guideline for Sci-Tech Innovation Board

CFBOND
2019-01-25 09:35

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Preparations for the new Sci-Tech Innovation Board pick up speed as China adopts an implementation plan and the related guideline to this end.

On Wednesday, an implementation plan and a corresponding guideline on the launch of the Sci-Tech Innovation Board and its registration-based initial public offering (IPO) system were approved at the sixth meeting of the central committee for deepening overall reform.

The above meeting called for steady progress in piloting the registration-based IPO system, coordinated reforms on share issuance, listing, information disclosure, trading and delisting as well as the establishment of a share issuance and listing system centered on information disclosure.

The approval of the above plan and guideline was another milestone at China's capital market since Chinese President Xi Jinping announced in early November that the country would set up the Sci-Tech Innovation Board and pilot the registration-based IPO system at the Shanghai Stock Exchange (SSE).

The follow-on consultation papers for the detailed supporting mechanisms may be made public after the annual meetings of China's top legislature and political advisory body to be held in March, according to Guotai Junan Securities Co., Ltd.

It also predicted that the first groups of companies might land at the new board as early as the second quarter of 2019. The first batch of IPOs, possibly involving 10 to 15 firms, may have a total fundraising target of less than 20 billion yuan (2.95 billion U.S. dollars). 

The first IPOs at the new board may take place in the first half of 2019, said a report of Shanghai Securities News citing a study by China International Capital Corporation Limited (CICC). 

For the whole year of 2019, about 150 companies may get listed at the Sci-Tech Innovation Board to raise 50 billion yuan (7.37 billion U.S. dollars) to 100 billion yuan (14.73 billion U.S. dollars), according to the study.

 
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