A record number of companies have refused to list on the Shanghai Stock Exchange in 2023, writes the Financial Times. This is due to the stricter regulatory requirements for obtaining a listing.
126 startups rejected an initial public offering on the stock market, more than in the last four years, the newspaper indicates. Projects are forced to demonstrate the viability of their business models in order to access a quote.
Previously, Chinese regulators led by the Securities Regulatory Commission demanded that the site set stricter standards for listing requests. Now it is not enough to demonstrate profitability, it is necessary to provide evidence that the organization is at the same technological level or above the market leaders. It is also necessary to confirm the sustainability of the business model.
Star Market was created specifically for technology startups. The specificity of the site was the softer requirements for filing IPO applications: it was enough to have an estimated capitalization of 4 billion yuan ($550 million).
Author:
Natalia Gormaleva
Source: RB
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