Semiconductors and integrated circuits. Photo: Wikimedia Commons/Raymond

The China Securities Regulatory Commission (CSRC), the country’s stock market watchdog, has lowered the threshold for Chinese technology companies that are either listed overseas or registered overseas but based on the mainland to debut on the A-share market under a pilot scheme.

Overseas-listed Chinese companies, or so-called red-chips, with a market cap of 20 billion yuan (US$2.83 billion) or above and in possession of self-developed, world-leading technologies, innovative strengths and which are in a strong position in their industries will be allowed to apply for listing in the A-share markets, according to the CSRC.

In the past, overseas-listed Chinese companies had to have a market cap of no less than 200 billion yuan to list in the A-share markets or issue China depositary receipts (CDRs).

The CSRC said eligible candidates’ businesses should be involved in the internet, big data, cloud, artificial intelligence, software and integrated circuits, advanced machinery and biomedical technologies. They can choose to list on the main boards, small-and-medium-sized enterprises (SME) board, Shenzhen’s ChiNext market or Shanghai’s Sci-Tech innovation board (STAR).

Companies with a variable interest entities (VIE) structure should seek advice from authorities overseeing the applicant’s industry, as well as the National Reform and Development Commission and the Ministry of Commerce, and make decisions in accordance with relevant laws and regulations, the CSRC said.

Meanwhile, innovative companies that have yet to be listed overseas should report to the CSRC before making their applications.

New REIT market

China has announced plans to set up a public market for real estate investment trusts (REITs) in order to channel personal savings and private capital into infrastructure projects.

Until now China has only allowed privately sold quasi-REITs in the real estate sector. Under the new initiative announced by the government, the country will see its first publicly sold REITs, which are investment vehicles that are backed by income-producing properties and trade like stocks.

REITs can help reduce debt risks in the short term and direct personal savings into investment capital in the long term, the National Development and Reform Commission and the CSRC said in a joint statement.

Company news

Huaneng Group, one of the five largest power generators in China, and China Coal Group recently signed a mid-and-long-term coal supply contract that can help stabilize the coal market and ensure the healthy development of both the electricity and coal industries, according to China’s National Energy Administration. Under the contract, China Coal Group will send coal from northern to southern China by ships.

Since this year, the demand for electricity and coal has decreased due to the Covid-19 pandemic. Huaneng Group has been seeking for partnerships with some large domestic coal enterprises to strengthen cooperation between coal suppliers and power generators.

China Everbright Bank, a Hong Kong-listed company, said its shareholder Central Huijin Investment Co Ltd will transfer all its 19.53% stake in the bank, or 10.25 billion A shares, to Everbright Group, which is the bank’s parent company. In return, Everbright Group will issue new shares to Huijin, which is its parent.

After the completion of this equity change, Huijin Company will no longer directly hold shares in Everbright Bank. Everbright Group’s stake in the bank will increase to 44.96%. The change has been approved by the Ministry of Finance.

Gree Electric Appliances Inc and Dahengqin Group, which is an investment arm of the Hengqin district government in Zhuhai, have signed a strategic cooperation agreement that will promote urban development and boost the real economy in Hengqin, Chinanews.com reported.

Dahengqin Group has constructed or been developing 383 infrastructure projects in Hengqin with a total investment of 270 billion yuan. Its total assets reached 80 billion yuan.

The story was written by Huang Wanyi and first published at ATimesCN.com. It was translated into English by Nadeem Xu.

Asia Times Financial is now live. Linking accurate news, insightful analysis and local knowledge with the ATF China Bond 50 Index, the world's first benchmark cross sector Chinese Bond Indices. Read ATF now.