Help | Sitemap | Archive | Advanced Search | Mirror in USA |
Friday, October 27, 2000, updated at 16:10(GMT+8) | |||||||||||||
Business | |||||||||||||
China's Second Board Market Rules UnveiledThe Shenzhen Stock Exchange, which will host China's second board stock market, has recently posted the draft rules for the new market on its official website, www.cninfo.com.cn., for public discussion.The nine documents publicized by the stock exchange concern the principles and procedures in approving second board listings, the rules for market trading, the formats for listing applications and prospectuses, among others. According to the draft rules, companies must have operated for more than two years under the same management before they can be listed on the second board market. Companies should hold net physical assets worth eight million yuan (US$963,000) and a debt-asset ratio of no higher than 70 percent. Their net income from major business should be not less than five million yuan (US$602,000) over the nearest two accounting years and not less than three million yuan (US$361,000) over the last accounting year. After the initial public offerings (IPO), listed companies must have an equity capital of more than 20 million yuan (US$2.41 million). A company must also have more than 200 shareholders with shares worth more than 1,000 yuan (US$120.48) in face value. Outstanding shares after the IPO should be not less than 25 percent of its total shares. Besides the above-mentioned provisions, a company will be judged by the technological content of its products as well as its growth potential in reviewing its listing application. The listing approvals shall be given out by a 50-member committee under the China Securities Regulatory Commission, with its members coming from the stock exchange, securities houses, offices of lawyers and accountants, fund management companies and other institutions. Companies listed with the second board will be required to issue quarterly reports in addition to the annual and interim reports required by the main board.
In This Section
|
|
Copyright by People's Daily Online, all rights reserved | | Mirror in U.S. | Mirror in Japan | Mirror in Edu-Net | Mirror in Tech-Net | |