The China Securities Regulatory Commission on Wednesday issued the much-anticipated overall plan for setting up the Science and Technology Innovation board on the Shanghai Stock Exchange, The Paper reported.
The new board will test the registered-based system that newly listed companies will use when they report to the CSRC for registration after being approved by the SSE.
There are five different sets of market capitalization requirements for the initial public offering. One of them is that companies with an estimated market value of no less than three billion yuan, as well as operating income no less than 300 million yuan, are eligible for applying for an IPO.
Also, there will be no price limit for the first five trading days after the IPO. Following that, the price of a stock is not allowed to rise or fall by more than 20% in one trading day. This compares to the 5% limit in other trading boards in the A-share market.
Individual investors who are interested in participating in trading must have no less than 500,000 yuan in daily average assets, and have more than 24 months of experience in stock trading.