Friday, May 8, 2009

The Nasdaq Of China Is Coming

China: Stock Exchanges

Eighteen Chinese companies are set to test the fund-raising capability of the newly set up Chinese Nasdaq.

The 18 tech-related companies -- all based in Beijing's Zhongguancun technology district, the so-called Chinese Silicon Valley -- have reached required standards to float shares on China's Nasdaq-style second board for stocks in Shenzhen.

The pioneers include Beijing Time Group, Beijing Atom HighTech Co, Beijing Beilu Pharmaceutical Co, Beijing Huahuan Electronics Co, Beijing Modern Agricultural Equipment Co and Beijing Hengye Century Technology Co. They are among 55 firms which are now trading via a special system for non-listed companies, Securities Times, the mouthpiece of Shenzhen stock exchange, reported Wednesday.

All listed companies must meet the requirements of the China Securities Regulatory Commission. I'll save you the time dissecting this article and tell you what it takes to get listed on China's Nasdaq.

- Issuers need to be in the black for the two most recent consecutive years prior to listing

- Combined profits of the two years must be at least 10 million yuan ($1.5 million).

- If they fail to meet the prior requirement, they must have made profits of at least 6 million yuan ($0.7 million) in the most recent year off of a revenue stream of at least 50 million yuan ($7.3 million).

- Companies must show they have had revenue growth of at least 30% in the two most recent years prior to listing.

More statistics on the Nasdaq of China as they are released. Market Cap, etc.

Source: Forbes