China‘s securities regulator on Friday unveiled a fourth set of listing standards for the ChiNext board, expanding access for technology startups as Beijing steps up efforts to support homegrown innovation amid heightened competition with Washington.
The measures aim to improve funding for startups in emerging and future industries, according to guidelines released by the China Securities Regulatory Commission (CSRC) on deepening reforms of the ChiNext board, Shenzhen’s startup board for growth companies.
The move comes as competition between Beijing and Washington over semiconductors, artificial intelligence and other advanced technologies intensifies, with China seeking to bolster financing channels for domestic innovation.
“These companies generally have characteristics such as large upfront investments, low starting revenues, and rapid value appreciation, and urgently need more efficient and better-matched financial support from the capital market,” the CSRC said.
The new set of listing standards comprises two criteria. One primarily targets emerging industry enterprises and requires companies to have an expected market value of at least 3 billion yuan, revenue of at least 200 million yuan in the most recent year, and a compound annual revenue growth rate of at least 30% over the past three years.
The expansion follows ChiNext‘s adoption of a third set of standards in June last year to support innovative companies that have yet to make a profit, in addition to two standards for profit-making domestic enterprises.
The regulator also said it would leverage the role of local governments and allow them to recommend companies planning to list on ChiNext.
The regulator added it would support listed companies in issuing technology innovation bonds, green bonds and other financing products.
Reuters
