Equity Market

Differentiated Listing Requirements for Mainland China Equity Markets

Key Differences Main Board / SME Board ChiNext STAR Market
Business integrity In the last 3 years, no major adverse changes have occurred in the
main business, directors and senior managers
In the last 2 years, no major adverse changes have occurred in the
main business, directors and senior managers
In the last 2 years, no major adverse changes have occurred in the
main business and directors, senior managers and core technical personnel
Finance and accounting   Requirements on net asset, cash flow, revenue, and net income Requirements on net asset, revenue, and net income Emphasize market value and revenue instead of net income requirements
Profit In the last 3 fiscal years, the company has made continuous profits
 and accumulated net profits exceeds 30 million RMB
In the last 2 years, the company has made continuous profits
 and accumulated net profits are no less than 10 million RMB

Or in the last year, the company has made profits and the total
operating revenue is no less than 50 million RMB
Companies that conform to the orientation of STAR Market,
are not yet profitable or have accumulated deficits are allowed to be listed

Based on the estim

ated market value, revenue, net income, R&D investment, cash flow and other factors

5 sets of differentiated listing requirements
Cash flow In the last 3 fiscal years, the cumulative net cash flow from
operating activities exceeds 50 million RMB, Or the
accumulated total operating revenue exceeds 300 million RMB
No requirements
Net asset Intangible assets account for no more than 20% of net
assets at the end of the latest period

There is no undistributed deficit at the end of the latest period
Net assets no less than 20 million RMB at the end of the latest period

There is no undistributed deficit

STAR Market

More Inclusive Listing Standards

Financial Indicators Where an applicant applies for listing on the STAR Market of the SSE,
its market value and financial figures shall meet at least one of the following criteria:
  1
Estimatedmarket value
Net profit
(Operating revenue)
2
Estimatedmarket value
Operating revenue
Total share of R&D investment
3
Estimated market value
Operating revenue
Net cash flow from operation
4
Estimated
market value
Operating revenue
5
Estimated
market value
Other indicators
Estimated market capitalization No less than RMB 1 billion No less than RMB 1.5 billion No less than RMB 2 billion No less than RMB 3 billion No less than RMB 4 billion
Net profits Net profit for the last 2 years are positive and
cumulative net profit is no less than 50 million yuan
Net profit for the last year is positive / / / The main business or products need to be approved by the relevant State departments.

The market is huge, and the issuer has achieved initial progress.

Pharmaceutical companies need at least one core product approved for phase II clinical trials.

Other companies that meet the positioning of the STAR Market should have obvious technical
advantages and meet the corresponding conditions.
Operating revenue / No less than RMB 100 million in the last year No less than RMB 200 million in the last year No less than RMB 300 million in the last year No less than RMB 300 million in the last year
R&D Investment / / R&D investment accounts for no less than 15% in the
accumulative operating income in the last 3 years
/ /
Net cash flow from operation / / / No less than RMB 100 million in the last 3 years /

Listing Standards for Red-chip Companies

Types of enterprises Where an applicant applies for listing on the STAR Market of the SSE,
its market value and financial figures shall meet at least one of the following criteria:
1 Large red-chip companies listed abroad 2 Unlisted red-chip companies
Market value/estimated market value The market value is no less than RMB 200 billion. The estimated market value is no less than RMB 20 billion. The estimated market value is no less than RMB 10 billion. The estimated market value is no less than RMB 5 billion.
Operating revenue / / The operating revenue is growing fast. With indigenous R&D capacity and world-leading technology, the issuer is well-placed in the horizontal competition.

Listing Standards for Companies with Differentiated Voting Rights

Estimated market value Where an applicant applies for listing on the STAR Market of the SSE,
its market value and financial figures shall meet at least one of the following criteria:
1 No less than RMB 10 billion 2 No less than RMB 5 billions
Operating revenue / The operating revenue for the latest year is no less than RMB 500 million.

Source: SSE, as of 31 October 2019

Listing Requirements for Funds

The Rules Governing the Listing of Securities Investment Funds on the Shanghai Stock Exchange (Revised in 2007) set out the listing requirements for funds. These requirements mainly include the following:

A fund shall meet the following requirements to be listed on the Exchange:

(1) the fund units have been approved for sale by the China Securities Regulatory Commission (“CSRC”) and the corresponding fund contract has taken effect;

(2) the fund contract is valid for five years or more;

(3) the fund has raised proceeds of RMB 200,000,000 Yuan or more;

(4) the fund has 1,000 or more unit holders;

(5) the fund has an approved fund management company and custodian; and

(6) the fund meets such other requirements as prescribed by the Exchange.

Any fund management company intending to list a fund under its management on the Exchange shall submit to the Exchange the following documents and materials:

(1) the listing application;

(2) the fundraising application materials examined by the CSRC and the associated approval document;

(3) the listing announcement;

(4) the short name and trading symbol of the fund;

(5) proceeds verification report issued by an accounting firm licensed to provide securities-related services;

(6) listing recommendation letter(s) issued by one to two members of the Exchange;

(7) document certifying that all fund units have been placed under custody;

(8) contact information of the fund management company, as well as the name and contact information of fund managers, person-in-charge of information disclosure, and listing agents for the fund;

(9) the fund management company and custodian’s undertaking to perform their respective duties following fund listing;

(10) the fund management company’s warranty regarding the truthfulness, accuracy, and completeness of the documents and materials it has provided; and

(11) any other documents required by the Exchange.

In the case of the listing of an ETF, the fund management company shall, in addition to the above documents and materials, also submit the list of securities companies authorized to create and redeem the ETF units as well as the corresponding authorization agreements.