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Shanghai Stock Exchange releases finalized regulations for new tech board

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Billy Clark
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The Shanghai Stock Exchange released a finalized set of regulations late last week for its new tech board, expanding upon the draft introduced on Jan. 30.

“Red-chip companies”—China-based firms incorporated and listed outside the mainland, especially in Hong Kong—with rapid growth, self-developed and cutting-edge technologies, and competitive advantages in its segment are allowed to list on the new tech board, according to the new regulations.

The rules also provide a number of other standards for firms that wish to go public on the new board, stating that companies need to meet at least one to qualify.

The loosest standards include an expected market capitalization of no less than RMB 1 billion (around $150 million), positive net profit margins in the two years prior to listing, and a total net profit margin of no less than RMB 50 million (around $7.5 million) during the same period.

Companies with a market capitalization of no less than RMB 1 billion, positive net profit margin over the past year, and revenue of no less than RMB 100 million (around $15 million) during the same period are also qualified to apply.

Also eligible to list are companies with an expected market capitalization of no less than RMB 1.5 billion (around $224 million), revenue of no less than RMB 200 million (around $30 million), and a total R expense of no less than 15% of their total revenue over the past three years.

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