China ChiNext Reforms Expand Access for Pre-Profit Tech Firms

China ChiNext reforms will allow pre-profit technology companies to list on Shenzhen’s startup board, as regulators move to support innovation and strengthen domestic capital markets.

The China Securities Regulatory Commission said firms in emerging industries with a market value of at least RMB3bn (USD439m) and revenue of no less than RMB200m in the latest financial year can apply for initial public offerings.

Authorities will also introduce market makers to improve liquidity and expand exchange-traded funds, options, and index futures linked to ChiNext.

The reforms extend the model used on Shanghai’s STAR Market, as Beijing seeks to channel more capital into high-growth technology sectors and boost self-reliance.