Portfolio Investments

A new mechanism has been agreed by both the SSE (Shanghai Stock Exchange) and SZSE (Shenzhen Stock Exchange) to allow board transfers of companies listed on the NEEQ (National Equities Exchange and Quotations, the “new third board”) to the STAR Market on the SSE or GEM Board on the SZSE respectively.

All transfers follow the guidance of the CSRC (China Securities Regulatory Commission). The eligible company should fulfill conditions of the boards, be continuously listed on the NEEQ for 1 year at least, have total equity of at least CN¥30 million (US$4.64 million) with at least 1 thousand shareholders.

The review period for such transfers has been reduced to 2 months instead of 3 that normally all companies undergo during IPOs on these boards.