100 firms apply to list on Shenzhen's second board
More than 100 companies submitted applications yesterday to float shares on the long-awaited Nasdaq-style second board in Shenzhen.
The China Securities Regulatory Commission began receiving the applications at its headquarters in Beijing yesterday morning for the technology-oriented Growth Enterprise Market that is expected to start trading in October.
Long Yong, the chief of Guosen Securities' investment banking department, said 11 companies under his firm's sponsorship were among the first to sign up.
'Enthusiasm from cash-strapped small companies to list on the board is strong and we estimated that 70 to 80 companies have made applications,' Mr Long said. His clients were looking to raise an average 200 million yuan (HK$227 million) each, he said.
The regulator said candidates would receive a first response within 20 days of applying, while it would take three months to review a company.
Companies on the GEM will face stricter disclosure conditions and limits on stock sales than those on the Shanghai and Shenzhen bourses, but they will have lower revenue and earnings requirements.
Market observers have speculated that up to 150 companies will list on Shenzhen's second board this year. There are 170 companies listed on Hong Kong's GEM board.
