Chinese investors can now open accounts to trade stocks that will be listed on the Shanghai Stock Exchange’s science and technology innovation board, said Yan Qingmin, vice chairman of China Securities Regulatory Commission.
Individual investors need to have a minimum of RMB 500,000 (US$75,000) as an initial deposit to open an investor account for the board, according to Yan.
China has finalised regulations for the new technology exchange. Stocks on the board will see no limit on their price and debut gains. Unprofitable companies will be able to go public. However, buying and selling of stocks within the same business day will not be permitted.
Li Xunlei, chief economist of Zhongtai Securities, predicts that the board will see trading as early as July. He suggests that hundreds of companies will be listed on it by the end of this year.
In Hubei province alone, more than 100 companies have been making preparations for their IPOs on the new board. The chief of the province’s securities regulator, Li Bingheng, said that four to five have already been shortlisted.
