China said to implement IPO reform on Shenzhen startup board ChiNext in August

Shenzhen, China. Photo: Welkin Chen/unsplash

China plans to officially implement initial public offering (IPO) reforms on Shenzhen‘s  startup board ChiNext in August, three sources told Reuters on Friday.

China last week announced plans to launch a U.S.-style, registration-based IPO system on ChiNext as Beijing accelerates capital market restructuring to reinvigorate an economy ravaged by the coronavirus.

The official launch of the reform will be timed to coincide with the 40th anniversary of the Shenzhen Special Economic Zone, which pioneered China‘s economic reform and opening, said the sources with knowledge of the plan.

The Shenzhen Stock Exchange and the China Securities Regulatory Commission (CSRC) were not immediately available for comment.

Under the registration-based IPO system, which was first introduced on Shanghai’s Nasdaq-style STAR Market, companies seeking listings no longer need approval from CSRC, the stock market watchdog, greatly shortening the waiting period.

Instead, the Shenzhen Stock Exchange will vet ChiNext IPO applications based on disclosure rules, while the market will decide on the pricing and timing of new share sales.

Regulators have told underwriters to tighten up their due diligence on companies preparing to go public, according to the sources.

Reuters

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.