The central government is giving serious consideration to a formal proposal submitted by Macau to establish a new kind of stock exchange in the Special Administrative Region. Traded in the offshore Renminbi, stocks listed on this exchange would be heavily weighted toward technology companies, much like the Nasdaq board in New York, and the recently established STAR Market in Shanghai.
It looks like this new market is part of a broader move within the region, if not the rest of country, to embrace diverse means of raising equity for Chinese companies. At the same time, Guangdong is looking into establishing a market like Shanghai’s STAR Market, in Guangzhou. And it has also applied formally to establish a Commodity Futures Exchange, like the Chicago equivalent, in Guangzhou’s Nansha district.
Could this be the start of a major push to get more Guangdong-based companies into the hands of equity investors? It certainly seems so, and there is huge upside room to move on this: just 1.8% of Guangdong’s 45,000 National-Level technology firms are publicly listed. Moreover, the person who revealed the details is just the kind of official to make this clear – and public.
Continue reading Macau pushes for Nasdaq-style offshore RMB market
Nasdaq-listed Internet company Netease is said to be preparing for an initial public offering in the US of Youdao, its online education brand, which is expected to raise at least US$300 million, according to Bloomberg.
Guangzhou-based Netease develops and operates online PC and mobile games, email services, music-streaming services and e-commerce platforms. Founded in 1997, it has turned out to be one of the country’s most remarkable stories of resilience through the ups and down of the online industry.
Continue reading Netease to seek US IPO for Youdao
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.