The Shenzhen Stock Exchange has called on brokers to fast-track applications for companies seeking to list on its ChiNext board, as China moves to bolster private enterprise and cushion the economy against mounting pressure from US tariffs.
In a meeting with representatives from about a dozen investment banks in June, Guangdong’s tech-focused exchange reportedly pledged to speed up the vetting process and relax some listing requirements for initial public offerings (IPOs), Bloomberg reports. The goal is for all companies that submit applications to receive initial feedback this year.
The push reflects a broader shift in Beijing’s stance after years of tight controls on private companies and share sales. With economic pressure mounting – exacerbated by the ongoing trade tensions with the US – the central government has signalled renewed support for the private sector.
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Earlier this year, for instance, President Xi Jinping convened a meeting with prominent business figures, including Alibaba co-founder Jack Ma, in a high-profile gesture of outreach to tech entrepreneurs.
At a forum in June, China Securities Regulatory Commission chairman Wu Qing said the country planned to enable its stock markets to better support tech companies and attract long-term investors. The regulator also wanted to encourage more companies to raise funds in the mainland, as many were choosing to go public in Hong Kong instead.
Shenzhen is home to the mainland’s second biggest stock exchange after Shanghai. Those two, along with Beijing’s, collectively accepted 150 new IPOs in June – the highest monthly count this year to date.
