Science and Technology Innovation Board (Sci-Tech Innovation Board) is a new trading platform in the Shanghai Stock Exchange (SSE) independent from the existing main board, focuses on companies in high-tech and strategically emerging sectors. The pilot registration-based IPO system optimized the issuance conditions, which is a major reform step to simplify the listing process.

Establishing the sci-tech innovation board and piloting the registration system is to support and serve sci-tech innovation enterprises, enhance the inclusiveness of the capital market for the science and technology innovation enterprises, greatly bolster the reform orientation toward innovation in key technologies, conduce to improving the capacity of the capital market for driving the real economy, and boost the healthy development of the capital market. Meanwhile, the listing rules has greatly improved the inclusiveness and adaptability of the listing conditions. The trading system as a whole is gradually approaching the mature foreign capital market.

The sci-tech innovation board is an important achievement of international reform, a significant institutional innovation in the capital market, and an important move to improve China's multi-level capital market system. Sci-Tech Innovation Board is undoubtedly the focus of the capital market in 2019.

Introduction

After-hours fixed-price trading is introduced:

• After the closing call auction, the trading system will do matching for the closing price orders based on the order of time and execute at the closing price of the day.
• The closing price orders could be made from 9:30 to 11:30 and 13:00 to 15:30 on each trading day.
• After-hours fixed-price trading is from 15:05 to 15:30 on each trading day. Stocks that are still suspended trading at 15:00 will not be traded during after-hours fixed-price trading.

Price limit is appropriately relaxed:​

• The price limit will be relaxed to 20%.
• For IPOs, no Price limit for the first 5 trading days after listing.

Volume of a single order is adjusted:

• The volume of a single market order or limit order should be no less than 200 shares, which can be incremented by 1 share as a unit.
• The maximum volume of a single market order is 50,000 shares, and that of a single limit order is 100,000 shares.
• The quantity of each single order should be no less than 200 shares.

Trading mechanism of securities lending is optimized

• Upon listing and trading on the Sci-Tech Innovation Board, the stocks can be used as the underlying assets for the securities lending, of which the criteria of selecting the underlying securities will be different from those of the A shares listed on the main board.

Enterprises

The priority will be given to enterprises that are in line with national strategies, master key core technologies, boast outstanding capacity for scientific and technological innovation, rely mainly on core technologies for production and operation, and have a stable business model, high market recognition, a good image in the society and a great potential for growth. The government will focus on supporting new high-tech industries and strategic emerging industries, including new-generation information technology, high-end equipment, new materials, new energy, energy saving and biomedicine to promote the deep integration of the Internet, Big Data, cloud computing and artificial intelligence with manufacturing.

Listing rules​

• Enterprises should register with the China Securities Regulatory Commission (CSRC). Any listing application will be reviewed by the Shanghai Stock Exchange (SSE) and expected to be completed within 3 months.
• The application review will focus on the authenticity, accuracy and completeness of the issuer’s information disclosure, as well as the content and format of the prospectus. Sponsors and securities service agencies shall be responsible for the information disclosure of the issuer.
• The issuance and underwriting mechanism is market-oriented. The price, size, and pace of new issue shares will be determined by enquires of institutions.

Investors

The requirements for institutional investors

• Institutional investors shall comply with the laws and regulations and the business rules of the SSE.

The requirements for individual investors​

• The average daily total assets in the securities and capital account of the 20 trading days before the opening of application permission shall not be less than RMB 500,000.
• Participate in securities trading for more than 24 months.
• Comply with other conditions specified by the SSE.
• Unqualified investors can participate in the board through other methods like mutual funds.

Are investors required to create a new investment account to trade on the Sci-Tech Innovation Board？

• Investors can use existing  A-share securities accounts.

Compare with the Main Board

Position of the Board