China to Allow Unprofitable Tech Companies to List on ChiNext
Tencent Finance, 3/11/14
The China Securities Regulatory Commission (CSRC) is planning to revise the exchange listing criteria of ChiNext, the NASDAQ-style growth enterprise board on the Shenzhen Stock Exchange, according to CSRC chairman Xiao Gang. Financial requirements will be relaxed to allow unprofitable companies who still meet other exchange listing requirements to list on the board.
The CSRC's current ChiNext listing regulations are as follows:
1. Companies applying for ChiNext listing must have been in operation for over three years;
2. Companies must have recorded either (a) two consecutive years of increasing profitability prior to listing, with cumulative two-year profit of over RMB 10 mln; or (b) one year of profitability with at least RMB 5 mln in profit, RMB 50 mln in one-year revenue, and average revenue growth of 30% YoY or over for the past two years;
3. Net asset value of over RMB 20 mln in the quarter prior to applying to list, and no net operating loss;
4. Total company share capital of at least RMB 30 mln upon listing.
Editor's Note: For more information on this topic, please see "China to Relax Financing Regulations for Tech Companies," MD 1/15/14 issue.
Keywords: regulation Xiao Gang Internet CSRC ChiNext IPO bourse Shenzhen Stock Exchange
Sending
