Counseling panel launched to support enterprises
Putuo District has established a counseling panel to support potential enterprises to get listed.
The district government has hired 11 experts from well-known investment banks, venture capital institutions and intermediaries to serve as experts on the panel.
Debon Securities CEO Wu Xiaochun was appointed head of the panel, while Ren Peng, assistant president of Guojin Securities, became the co-lead director.
Officials with the district government and representatives from financial institutions, scientific parks and enterprises attended the event, while Zhou Minhao, director of Putuo, issued letters of appointment.
After the appointment ceremony, Wang Xinmiao, director of the Shanghai Stock Exchange’s listing service department, explained the technology innovation board’s policy and outlined the listing standards and business rules of the new board.
The new technology innovation board, a Nasdaq-style tech board announced in November by President Xi Jinping, is expected to start trading in the middle of the year. It represents a new era for the Chinese capital market.
Two potential enterprises based in Putuo made presentations on how to attain listing standards and received professional guidance from the newly established panel.
As one of the three major tasks that President Xi handed over to Shanghai, the new board aims to fill the shortcoming of technological innovation in the capital market, said Zhou.
The launch of the new board is expected to benefit more small and medium-sized science and technology enterprises, who will receive better financing support and improvement to their service capabilities.
Putuo District government established a leading group on business listing service in January 2019 to focus on policy research, assistance and other supporting services. The group is based in the district’s finance office.
Putuo has also released a guideline in 2018 on accelerating the development of financial service industry. It granted a subsidy of up to 3 million yuan (US$446,887.43) to enterprises listed on the Shanghai Stock Exchange for the first time.
Putuo plans to increase the amount of subsidies for listed enterprises this year and relax subsidy conditions for overseas enterprises.
There are 12 potential enterprises in Putuo to get listed on the technology innovation board, including five that can fully meet basic listing conditions.
The district government signed a memorandum of strategic cooperation with Shanghai Stock Exchange on April 2 to provide financial services for its key enterprises.
The cooperation focuses on restructuring and listing, mergers and acquisitions, as well as the issuance of corporate bonds, along with in-depth and long-term cooperation in training, risk prevention and control.
Putuo will determine enterprises that are about to be listed and recommend the list to the stock exchange.
The exchange will then provide targeted market services based on the needs of these key regional enterprises.
In recent years, the financial industry in Putuo has shown a rapid development trend, and the proportion of tax revenue at the district level has increased significantly.
Putuo strives to seize opportunities from the new board and reform the pilot registration system.
A working mechanism is to be established, providing listing policy training, a financing plan design and financial and legal assistance for potential enterprises, according to the district government.