The Shenzhen Stock Exchange (SZSE) has indicated that introducing a fourth set of listing criteria will help expand the coverage of the ChiNext board and further increase its market attractiveness. The new standard sets higher market capitalization requirements to better identify companies with strong market recognition. The revenue indicator, with a threshold of 200 million yuan, measures a company's commercialization level and ensures a certain scale, aligning with the growth patterns of early-stage innovative enterprises.
After the addition of the fourth standard, ChiNext's listing framework will become more inclusive and appealing. The first category under this standard combines expected market value, revenue, and revenue compound growth rate, emphasizing growth potential and catering to high-growth innovative companies in emerging industries, which often exhibit rapid expansion and relatively lower market valuations. The second category uses expected market value, revenue, and R&D investment metrics, highlighting innovation and targeting companies in future industries that demonstrate strong innovative capabilities but may have lower initial revenue.
In terms of IPO pricing mechanisms, improvements have been made to the allocation arrangements for offline offerings and the strategic placement system. On one hand, a new lock-up mechanism has been introduced to encourage long-term investment and promote reasonable pricing. On the other hand, the strategic placement ratio for small and mid-cap stocks has been raised. For companies with fast technological iteration and complex valuation challenges, this change aims to leverage the expertise of strategic investors more effectively. Specifically, the upper limit for strategic placement ratios has been adjusted from 20% to 30% for IPOs with fewer than 100 million shares, and from 30% to 40% for those with 100 million to 400 million shares.
The SZSE has also introduced a pre-review mechanism for IPOs to enhance information and technology security protection for high-quality innovative companies. This allows issuers to apply for pre-review before formal submission if early disclosure of business or technical information could significantly impact operations. The process involves submitting application documents similar to formal filings, with the exchange providing feedback without pre-approving eligibility. Details of the pre-review, including inquiries and responses, will be disclosed upon formal acceptance.
Additionally, trading mechanisms have been optimized to improve market stability and investor convenience. Market maker systems will be introduced to enhance pricing efficiency and reduce volatility. Block trade confirmations have been adjusted to real-time during trading hours, replacing the previous post-market confirmation, to facilitate participation. The scope of after-hours fixed-price trading has been expanded to include main board A-shares and all ETFs, providing investors with more flexible trading options based on closing prices.
These reforms are part of broader efforts to support innovation and align with national strategies for high-quality development.
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