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Banks

Companies line up to list on ChiNext on Aug 24 under new IPO rules

SHANGHAI (Reuters) - The first batch of companies registered for listing on Shenzhen’s start-up board ChiNext under a revamped initial public offering (IPO) system will make their debuts on August 24, the Shenzhen Stock Exchange said on Friday.

China introduced a U.S-style IPO system to the ChiNext in June, as part of efforts to reform the country’s stock markets and channel capital to start-ups.

The exchange did not say how many companies will list on August 24, but at the end of Friday, 23 firms had registered at the China Securities Regulatory Commission (CSRC) for a ChiNext listing, ChiNext’s website said.

They include software maker Tansun Technology Co, Academy of Environmental Planning and Design, and digital equipment maker Shenzhen Jame Technology Corp.

Under the new ChiNext listing rules, the Shenzhen exchange vets IPO applications based on disclosure requirements. Companies wanting to go public no longer need CSRC approval.

Meanwhile, ChiNext shares will be allowed to rise or fall up to 20% in a session, compared with 10% previously.

The ChiNext reform is modelled on rules used by Shanghai’s Nasdaq-style STAR Market launched last July.

Reporting by Samuel Shen and Andrew Galbraith. Editing by Jane Merriman

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