First companies obtain regulatory approval for IPOs under new ChiNext system

FILE PHOTO: A statue of a bull is displayed outside the Shenzhen Stock Exchange in the southern Chinese city of Shenzhen October 23, 2009. REUTERS/Bobby Yip/File Photo

SHANGHAI - Three Chinese companies have become the first to obtain regulatory approval to publicly list on Shenzhen’s start-up board ChiNext, after a recent reform aimed at fast-tracking initial public offerings . China introduced a U.S-style IPO system to the ChiNext a month ago, as part of efforts to reform the country’s stock markets and channel much-needed capital to innovative start-ups as the world’s second-largest economy recovers from the fallout of the coronavirus pandemic.

Three companies - Beijing FengShangShiJi Culture Media Co, Contec Medical Systems Co and LD Intelligent Technology - have met the conditions for IPOs on the ChiNext board of the Shenzhen Stock Exchange, the exchange said in a statement late on Monday.Under the new, registration-based listing system for ChiNext, the Shenzhen exchange vets IPO applications based on disclosure rules. Companies wanting to go public no longer need approval from the China Securities Regulatory Commission.

The ChiNext reform is modelled on rules used by Shanghai’s Nasdaq-style STAR Market launched last July. In addition to simplifying the listing process, the reform also gives market forces greater role in pricing shares.Reporting by Samuel Shen and Josh Horwitz; Editing by Ana Nicolaci da Costa

Chi next System means China next, can be a factor influencing more and more people devoting their passion on their star-ups. Innovation starts to become more And more important for various entrepreneurs.

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