BEIJING, April 16 (Xinhua) -- Chinese securities brokers are widely waiting for debut of detailed rules on Chinese main board-listed companies' spin-off and separate listing of subsidiaries on the new sci-tech board currently, reported the Xinhua-run China Securities Journal Monday.
The new sci-tech board, here referring to the science and technology innovation board and focusing on high-tech and strategically emerging sector businesses, pilots registration-based initial public offering (IPO) system in China.
They made the moves as Li Chao, vice chairman of securities watchdog - China Securities Regulatory Commission (CSRC) once told media that detailed rules over companies listed on main boards to spin off their subsidiaries on the new sci-tech board were sure to be mapped out.
According to analysts with investment banks, appraising the reasonability, feasibility and regulatory compliance of listed firms’ spin-off and listing of their subsidiaries and checks over the rationality, necessity and fairness of related party transactions are expected to be the key points of the aforementioned detailed rules pending for releasing.
For investment banks, they pay much attention to requirements for the to-be-spun-off subsidiaries of main board listed companies including profitability, related party transactions and horizontal competition, responsibility and obligations of intermediaries, and information disclosure.
Currently, some securities brokers in China have been preparing for and reserving related programs and firms supposedly qualified for the future spin-off such as firms quoted for trading on China's National Equities Exchange and Quotation, known as the "new third board", are closely watched over by securities brokers. (Edited by Duan Jing, duanjing@xinhua.org)
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