(Bloomberg) -- China’s top leaders formally approved the establishment of a new high-tech board at the Shanghai Stock Exchange, bringing the launch of the much anticipated trading venue one step closer.
A high-level meeting chaired by President Xi Jinping said the nation must increase the capital market’s inclusiveness of science and technology companies and support key technological innovation, according to the official Xinhua News Agency.
The new technology and innovation board, first announced by President Xi Jinping during the China International Import Expo last year, aims to ease financing for high growth technology firms as informal channels of capital dry up amid a government clampdown on borrowing. The new board may also help stem an exodus of tech listings, especially as offshore bourses offer more preferential policies for new economy firms.
The draft rules for the new trading venue are expected as early as this month, local media has reported.
The new high-technology board is an important task assigned by President Xi, and the China Securities Regulatory Commission is working "day and night" to implement it as soon as possible, said Fang Xinghai, vice chairman of CSRC during a forum earlier this month.
Wednesday’s Xinhua report also said that the board will pilot an IPO registration system while the nation pushes forward reform in issuance, listing, information disclosure, trading and delisting. Under the current approval-based IPO system, it can take months and even years for firms to be listed on Chinese exchanges.
To contact Bloomberg News staff for this story: Lucille Liu in Beijing at xliu621@bloomberg.net
To contact the editors responsible for this story: Sam Mamudi at smamudi@bloomberg.net, Gregory Turk
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