50 companies to raise USD 7.2 billion through China high-tech board listing

Although unprofitable businesses are allowed to list, 40 out of the 50 companies have actually made a profit.

Shanghai Stock Exchange has accepted listing applications via the science and technology innovation board from 50 companies, reported Securities Daily Monday.

The companies in total planned to raise RMB 48.47 billion (USD 7.2 billion), said the report.

16 are in the computer, telecommunication and electronics manufacturing sector, while 13 come from special equipment manufacturing sector. In addition, there are other 8 from software and information technology sector.

Although unprofitable businesses are allowed to list on the high-tech board, 40 out of the 50 companies have actually made a profit in the last two years or in at least one year.

Li Xunlei, chief economist of Zhongtai Securities, predicted in early March that the board will see trading as early as July, suggesting that hundreds of companies will be listed on it by the end of this year.

The board, first announced by President Xi Jinping in 2018, is part of the country’s efforts to improve capital markets to reverse an exodus of technology listings.

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