Technology companies ready to get aboard city's Nasdaq
China yesterday approved a plan to set up a Nasdaq-style board for technology companies in Shanghai, aimed at improving their ability to raise funds.
Xi Jinping, general secretary of the Central Committee of the Communist Party of China, presided over the sixth meeting of the central committee for deepening overall reform, during which plans to launch a science and technology innovation board at the Shanghai Stock Exchange were approved.
A plan to implement a pilot registration-based initial public offering system for the new board was also approved at the meeting.
Xi first announced a plan for the board in November when attending the China International Import Expo in Shanghai.
Xi, also head of the central committee for deepening overall reform, called for “decisive results” in reforms in crucial areas by 2020.
The country should continue to fight the tough battles and “crack hard nuts,” ensure each undertaking is successful, and lay a decisive foundation for fulfilling the reform tasks mapped out by the third plenary session of the 18th CPC Central Committee, he said.
The move to launch the science and technology innovation board and experiment with the registration-based IPO system is a significant measure to implement the innovation-driven development strategy and deepen the capital market reform, according to a statement released after the meeting.
It urged making the capital market more inclusive for science and technology innovation enterprises, with an emphasis on support for key and core technology innovation while improving the capability of serving the real economy.
Steady efforts should be made to experiment with the registration-based IPO system, coordinate the reforms of stock offering, listing, information disclosure, trading and delisting regulations, and establish and improve a stock offering and listing system centered on information disclosure, said the statement.