New high-tech board to be set up in Shanghai

China will launch a new trading platform in Shanghai for high-tech and innovative companies and experiment with a registration-based system for initial public offerings (IPOs), as part of the ongoing efforts to further reform and open up the nation's financial market.

President Xi Jinping said on Monday that China will launch a science and technology innovation board at the Shanghai Stock Exchange, which will adopt a registration-based system. The new system is different from the approval system currently used by mainland bourses as it does not require a company to get approval from regulatory authorities before going public, but requires only the submission of some specific documents.

The China Securities Regulatory Commission said later that the move is part of the country's efforts to improve fundamental institutions of the capital market and to implement the innovation-driven development strategy.