Shanghai launches Nasdaq-style tech board

Shenzhen-based integrated biotech company Chipscreen is one of the first three companies to be listed on the new tech board in Shanghai, which officially launched today. The Nasdaq-style STAR Market follows a registration-based IPO system and is the mainland’s first exchange-run board listing firms that are not yet profitable.

The country’s chief stock regulator warned, however, that it would take time for the new board to settle down. It needs to balance a less cumbersome IPO system with quality of listed companies, while the absence of government guidance in pricing could result in lofty IPO prices, Yi Huiman, Chairman of the China Securities Regulatory Commission (CSRC), said.

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