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Approval From Three Parties Needed to Get Listed on Domestic Second Board
The listing of enterprises on the domestic second board trading system (now officially called the growth enterprises market (GEM)), will basically follow international practice and avoid administrative interventions from the government. There are no state-held legal person shares on the GEM and all the shares are negotiable. The non-state-owned enterprises will enjoy the same opportunities to get listed as state-owned ones do.
According to an industry insider, the listing of an enterprise on the GEM is subject to the examination and approval of the listing sponsor, Shenzhen Stock Exchange (SZSE) and the IPO Examination and Verification Committee, and China Securities Regulatory Commission (CSRC) will mainly play a regulatory role.
The industry insider said the procedure of application for listing on the domestic GEM is quite different from that of the existing main board; instead, it is quite similar to that of the GEM in Hong Kong. But the process of examination and approval of the IPO Examination and Verification Committee is also very important. On one hand, enough votes have to be got; on the other hand, the process will be relatively fair, as the IPO Examination and Verification Committee is not employed by SZSE and CSRC and in an independent position.
The general application procedure is:
First, the enterprise planning to get listed should seek a listing sponsor, which will assist the enterprise to get listed in accordance with the listing requirements.
Second, the enterprise submits the application for listing to SZSE for preliminary examination. If qualified, it should get two-thirds of the vote of the independent IPO Examination and Verification Committee and then be confirmed by CSRC to get listed on Shenzhen Stock Exchange. (Panorama)
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