China Securities Regulatory Commission: Support hard technology companies to list on the Science and Technology Innovation Board

In the “Decision on Amending the Guidelines for the Evaluation of Science and Technology Innovation Attributes (Trial)” released this time, the China Securities Regulatory Commission has mainly made three revisions.

The first is to increase the exemption of eligible overseas listed red-chip companies from the “Science and Technology Innovation Guidelines” on operating income indicators. This allows overseas red chips to more efficiently apply for listing on the sci-tech innovation board during the approval process, which is a major liberalization of standards.

Secondly, the two requirements on patented inventions seem to be minor adjustments in the text, but they also have profound meanings. The “Guidelines” changed “formation” to “application” in the main business, which means that the requirements for patents in the listing conditions have shifted from the possibility of bringing economic benefits to the fact that they can actually create benefits, emphasizing the importance of generating economic benefits. Compared with focusing on concepts in the past, the new listed companies of the science and technology innovation version in the future will put more emphasis on the actual ability to generate income.

The last is to refine the specific requirements of the appendix for issuers and sponsors, emphasizing that the primary task of institutions is to promote national strategies when cultivating companies listed on the Science and Technology Innovation Board. It once again emphasizes that enterprises should improve in “quality” and contribute to social development. In the future, only companies with hard power will have the priority to be listed.