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China to launch Nasdaq-style tech executive in Shanghai, and the expected challenges

SHANGHAI (Reuters) – China on Thursday officially launched the Shanghai, Nasdaq and the style of the tech’s board of directors, the top management of the country’s securities regulator to warn you that the hot-to-expect-STAR Market, will be faced with many challenges, in the first instance.

Yi Huiman, chairman of the China Securities Regulatory Commission (CSRC), there is a meeting of the Fujian delegation on the sidelines of the National People’s Congress (NPC) in the Great Hall of the People in Beijing, China, March 5, 2019 at the latest. REUTERS/Stringer

Yi Huiman, Chairman of the China Securities Regulatory Commission (CSRC), also unveiled plans for a wide range of capital market reform measures in the financial forum in Shanghai.

For the first time, as announced by President Xi Jinping in November, and Shanghai’s new tech council is largely seen as Beijing’s move to become self-sufficient in core technologies, such as potato chips, and biotechnology. So far, 120 companies have applied to list on the board.

The emphasis on the importance of the “STARS” of the Market, and the Chinese vice-premier Liu took part in the launch ceremony in Shanghai on Thursday, together with the CSRC, s. Yi.

It is complete with a US-style registration-based IPO system, the power of the Market in the mainland of China’s first exchange-are carried out on board, which makes it possible to pre-profit companies to make the list.

It will also do away with the paternalistic guidance of the regulatory authorities on IPO pricing and timing of the developments is that a number of banks and investors to call on China’s huge market, not yet.

The set-up of the new technology board “is a brand new exploration, and there can be many problems and challenges,” Yi said on Thursday.

For example, the STAR of the needs of the Market, with the balance of a less laborious and time-consuming IPO system and the quality of listed companies, while in the absence of any government intervention in the prices could lead to high IPO prices, Yi said.

In addition, the demand will be outstripping the supply, in the first place, so you can’t rule out the possibility of a short-term speculation and high volatility,” he added, urging investors to be rational, and to pay close attention to the disclosure of the information.

We also said that the CSRC will soon to roll out a series of measures to open up China’s capital markets more generally.

More specifically, China will encourage more foreign participation in the country’s stock market, bond market, and contribute to, the issuance of yuan -denominated “Panda bonds” by foreign companies.

In addition, China is planning to the local units of foreign private fund managers to purchase stocks on the Hong Kong-through cross-Connection control, and it will also relax rules on foreign banks, to provide the fund custodian services in China.

Reporting by Li Zheng, and Samuel Shen and David Stanway; Editing by Simon Cameron-Moore

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