Shenzhen Stock Exchange recently held an Internet Industry Forum in Beijing in a move to better implement the State Council’s “Internet Plus” initiative and enhance capital markets’ support for Internet companies. Listed and pre-IPO companies in the Internet industry, angel investors, venture capitals and securities companies were invited to the Forum to have in-depth communication around topics such as major problems and obstacles confronting Internet companies in their application for domestic listing, policy preference needed for their sustainable development after listing, etc.
Companies spoke up enthusiastically at the Forum and expected to solve the policy barriers such as earnings threshold, VIE structures, cross-period equity incentive, etc. confronting Internet companies in their application for domestic listing. They hoped to establish an IPO Approval Mechanism which is in line with the characteristics of Internet companies, and further optimize rules governing M&A, equity incentive, re-financing, information disclosure, etc. Venture capital investors and representatives of securities companies said that the current rapid development of new economy is representing by Internet companies, whose application for domestic listing should be vigorously supported. They suggested SZSE attract some leading Internet companies that have a certain scale and leading-edge in sub-industries.
“Internet Plus” has risen as a national strategy with multiple policy preference, which has led the Internet industry to a phase of new development opportunities with broad growth prospects, said an officer of SZSE, we have always attached great importance to the development of innovative companies, especially Internet companies. Currently, there are 34 Internet companies listed on SZSE, including 26 on the ChiNext board. Rapid expansion has been made after listing by these companies, which are highly recognized by the markets and investors. The ChiNext board has become the cluster of excellent Internet companies with characteristics distinctive from other boards of the markets.
One of the important considerations in the current promotion of the reform of IPO Registration System lies in the enhancement of inclusiveness of markets, emphasized by the SZSE officer, we hope to satisfy the listing and financing needs of more companies and give vigorous support to Internet and hi-tech companies for their listing on the ChiNext board. Therefore, SZSE will further optimize relevant rules, set up differentiated listing requirements, detail the requirements of industrial information disclosure, and establish a rule system which is in line with the law of enterprise growth and the characteristics of operation. Meanwhile, SZSE will also establish a market-classified and industry-classified review mechanism among the main board, SME board and ChiNext board. SZSE hopes to deepen their communication and cooperation with more and more Internet companies, who will support the constructions and reforms in the capital markets and jointly push forward the healthy development of the Internet industry.