An inauguration ceremony for the National Equities Exchange and Quotations is held in Beijing, capital of China, Jan. 16, 2013. (Xinhua/Wan Xiang)
BEIJING, July 20 (Xinhua) -- The board-transfer rules for companies listed on the selected tier of China's National Equities Exchange and Quotations (NEEQ), also known as the "new third board", will soon be applied, reported Xinhua-run Xinhua Finance citing Gao Li, spokesperson for China Securities Regulatory Commission (CSRC) on July 16.
Currently, rules related to the board-transfer have been gradually released and companies listed on NEEQ's selected tier named NEEQ Select will effectively kick off their board-transfer preparation work after going through internal decision procedures and intermediary check and review, said Gao on a regular press conference of CSRC held on July 16.
Opening on July 27, 2020, the NEEQ Select is about to see the first batch of 32 companies elevated from its innovation tier listing for a whole year.
Previously in late February, China's two bourses announced their board-shift rules for NEEQ Select-listed companies, which require that companies eligible for board transfer to the STAR Market and ChiNext market needs to list continuously on the selected tier for more than one year while fulfilling the positioning and starting conditions of the two boards. STAR Market and ChiNext market are two Nasdaq-style boards for startups in China.
Apart from the above, each of the NEEQ Select-listed firms is required to have a total equity of no less than 30 million yuan with at least 1,000 shareholders.
By July 16, there have been 57 firms listing on the NEEQ's selected tier, of which 79 percent
are small- and medium-sized enterprises (SME) and over 70 percent are engaged in modern services and advanced manufacturing sectors.
In 2020, the NEEQ Selected-listed firms hailed on average 11.36 percent and 17.74 percent of growths in their revenues and net profits compared with 2019. They raised in total 13.94 billion yuan of capital via the NEEQ Select, averaging 240 million yuan each. Their daily price changes averaged 2-8 percent without abnormal huge fluctuations.
Previously in September 2020, China's financial regulators jointly released rules for qualified foreign institutional investors (QFIIs) and Renminbi QFIIs (RQFIIs) to invest in securities and futures in domestic market, which allowed QFIIs and RQFIIs to invest in equities listed on NEEQ. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
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