What’s new: China’s securities regulatory commission approved the initial public offering (IPO) registrations of four companies on Shenzhen’s start-up ChiNext board following recent regulatory changes aimed at fast-tracking IPOs.
The four companies are performing event planner Beijing FengShangShiJi Culture Media Co. Ltd., medical instruments manufacturer Contec Medical Systems Co. Ltd., electroplated diamond tools maker Yangling Metron New Materials Inc. and measurement instruments maker Anhui Landun Photoelectron Co. Ltd.
The companies and their underwriters will coordinate with the Shenzhen Stock Exchange to determine listing dates, the China Securities Regulatory Commission (CSRC) said Friday in a statement.
The background: China introduced the registration-based IPO procedure for the ChiNext board earlier this year, about a year after it launched the mechanism on Shanghai’s new STAR Market tech board. The aim was to make the Chinese mainland markets more appealing to technology companies so that they will list at home rather than abroad.
Under the registration-based listing system, the Shenzhen exchange vets IPO applications based on disclosure rules and then files the applicants’ registrations with the CSRC. The regulator has up to 15 working days to decide whether to consent to the registrations, which significantly simplifies the approval process.
As of Friday, more than 300 companies have applied to list on the ChiNext board under the registration-based mechanism, according to bourse data (link in Chinese).
Contact reporter Denise Jia (huijuanjia@caixin.com) and editor Bob Simison (bobsimison@caixin.com)
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