China's new science and technology innovation board, a NASDAQ-style tech board, was officially launched at the Shanghai Stock Exchange (SSE) Thursday, marking a brand-new era for the country's capital market and a major move to upgrade the transitioning economy amid US assaults against Chinese tech firms.
The new sci-tech innovation board, named SSE STAR MARKET, was launched at the same time when the 11th Lujiazui Forum in Shanghai held Thursday and Friday, where top officials of the country's financial sector have gathered.
Registration-based IPO reform and the rule of law are the two priorities for the construction of the science and technology innovation board, Vice Premier Liu He said at the forum.
The board is considered a major reform for China's capital market as it will offer a trial for a registration-based system for IPOs which will ease the listing requirements. For instance, the new board could allow companies that have yet to make a profit to list.
It was first proposed in November 2018 and was approved in late January 2019 by Beijing.
Chinese companies and investors are lining up to take part in the new board. As of Monday, 120 Chinese firms in industries including information and technology and biotech had applied to list, having raised around 114.6 billion yuan in total, according to a report from China Securities Journal.
Officials also stressed efforts in further opening-up during the Lujiazui forum, which comes amid the ongoing China-US trade war.
The Chinese government is expected to introduce more measures for reform and opening-up and strengthen financial support for further development of the economy, Liu said, noting that China is indeed facing rising external pressure.
A series of financial opening-up measures will also be released during the two-day forum, Liu noted.
Guo Shuqing, chairman of the country's top banking and insurance regulator, said that China will further open its financial markets in sectors including banking insurance, securities and trusts, and will continue to welcome high-level foreign asset management institutions in order to accelerate RMB use on the global market.
Global Times
