China is considering tighter rules for first-time share sales on Shanghai’s Nasdaq-style Star board that will require firms to prove their technology credentials and raise the bar for companies such as Ant Group Co, Bloomberg reports. There will also be increased scrutiny on financial health to boost the quality of companies and protect investors, they said. With the tighter rules being talked about among mainland bankers, several companies have now been urged to drop their IPO plan from the Star board, the people said. PricewaterhouseCoopers forecast in January that at least 150 companies may seek listing on the Star market this year, compared with 145 in 2020. Together they may raise 210 billion yuan (US$32 billion), nearly double the estimated amount of fundraising at the main board.

Source: The Standard March 10, 2021 09:00 UTC