Agencies set out vision for innovation board

Source: Xinhua | 2019-01-31

China’s securities regulators yesterday issued a policy paper for the establishment of a new scientific and technological innovation board and pilot registration system.

The China Securities Regulatory Commission and the Shanghai Stock Exchange are pushing ahead with setting up the new board in line with the paper, which emphasizes it will mainly serve scientific and technological innovation enterprises that accord with national strategy, have cutting edge core technology and high market recognition.

Policies will give priority to supporting high-tech and strategic emerging industries, including new generation information technology, high-end equipment, new materials, new energy, energy conservation and environmental protection, as well as biomedicine.

This aims to promote integration of the Internet, Big Data, cloud computing and artificial intelligence with manufacturing, thus increasing middle and high-end consumption and boosting changes in quality, efficiency and power.

The science and technology innovation board will be paired with a registration-based system for initial public offerings and will be less stringent in its listing criteria, such as allowing companies that have yet to make a profit and startups with weighted voting rights, to list.

Enterprises with special equity structures and red-chip enterprises that meet the relevant requirements are also allowed to list.

In a separate document issued by the Shanghai Stock Exchange, the exchange said it would widen daily trading limits of the new board by allowing stocks to rise or fall by 20 percent each day before trading was halted.

There will also be no daily limits for the first five trading days of newly listed stocks on the new board, to allow for more trading flexibility.

Shanghai Mayor Ying Yong on Sunday told the second session of the 15th Shanghai People’s Congress that Shanghai will be fully supportive and cooperative in making and implementing the plan for the establishment of the science and technology innovation board and the registration system pilot.