-
Important news
-
News
-
Shenzhen
-
China
-
World
-
Opinion
-
Sports
-
Kaleidoscope
-
Photo Highlights
-
Business
-
Markets
-
Business/Markets
-
World Economy
-
Speak Shenzhen
-
Leisure Highlights
-
Culture
-
Travel
-
Entertainment
-
Digital Paper
-
In depth
-
Weekend
-
Lifestyle
-
Diversions
-
Movies
-
Hotels
-
Special Report
-
Yes Teens
-
News Picks
-
Tech and Science
-
Glamour
-
Campus
-
Budding Writers
-
Fun
-
Futian Today
-
Advertorial
-
CHTF Special
-
FOCUS
-
Guide
-
Nanshan
-
Hit Bravo
-
People
-
Person of the week
-
Majors Forum
-
Shopping
-
Investment
-
Tech and Vogue
-
Junior Journalist Program
-
Currency Focus
-
Food Drink
-
Restaurants
-
Yearend Review
-
QINGDAO TODAY
在线翻译:
szdaily -> Markets -> 
OTC firms seek tech board listing switch
    2019-03-18  08:53    Shenzhen Daily

A GROWING number of companies trading on China’s main over-the-counter (OTC) equity market are defecting to Shanghai’s hotly-anticipated Nasdaq-style technology board, as they follow the money.

Four companies, including Jiangsu Beiren Robot System Co. and Jiangxi JDL Environmental Protection Co., have already decided to ditch Beijing’s New Third Board, and apply for a listing on Shanghai’s Science & Technology Innovation board, expected to be launched in months.

Late Tuesday, Certusnet Information and Technology Co. became the latest defector, saying its shareholders will vote later this month to jump ship. More companies are expected to follow suit.

The New Third Board was launched in early 2013 to help fund innovation startups, but after an initial fever, the market has turned lifeless.

“Trading volume is tiny on the New Third Board, and the market offers little help in terms of financing,” said Wang Qing, vice president of Beiren Robot, which this month decided to prepare for a listing on Shanghai’s new tech board.

Beiren Bobot, which counts Zurich-based industrial giant ABB and Germany’s robotics firm Kuka as rivals, needs fresh capital to grow, and the new board is a good destination, Wang said.

Peng Hai, analyst at Lianxun Securities, estimates that 428 out of a total of 10,407 firms currently traded on the New Third Board are qualified for the new tech board. Although the OTC board has a low listing threshold, it is not open to public investors, resulting in a dearth of liquidity.

Shanghai’s tech board, announced by President Xi Jinping in November, marks a radical shift from the presently lengthy and cumbersome IPO process. Now, the board’s registration-based listing procedure cuts the regulatory red tape and allows startups that have yet to turn a profit to list.

“We think this could prove to be the boldest reform undertaken so far in China’s capital markets,” HSBC strategist Steven Sun wrote in a report this month. “We also think it is one of the most significant moves in China’s supply side reform of the financial industry.”

The Shanghai new board also exerts pressure on Shenzhen’s startup board ChiNext, which is looking to embrace the registration-based IPO system too amid fiercer competition for listing resources.

For example, DaoCloud, a cloud computing startup, said it will now aim to list in Shanghai, tearing up its earlier plan for a Shenzhen listing. (SD-Agencies)

深圳报业集团版权所有, 未经授权禁止复制; Copyright 2010, All Rights Reserved.
Shenzhen Daily E-mail:szdaily@szszd.com.cn