Page 4 - 201904G20Entrepreneurship Newsletter

China to Ease Up Listing Rules to Give Tech Sector a Boost

The China Securities Regulatory Commission issued the guidelines
on the science and technology innovation board, which pilots
registration-based initial public offerings (IPO) system (referred to
“the Guidelines”). The Guidelines greatly ease the limitations of
the capital market for the listing and trading of sci-tech innovation
enterprises and are intended not just for tech firms to raise funding
but also to streamline the process. It is reflected in the following four
aspects:
• Encouraging tech-innovation as the main goal. The Guidelines
emphasizes that the newly established sci-tech board in the
Shanghai Stock Exchange, mainly deals with world’s leading
science and technology, and the major needs of the country
development and economic growth, while serves science and other mechanisms are established so as to give more room to the
technology innovation enterprises with the support of national investors with professional capabilities.
strategy. It focuses on supporting high-tech industries and emerging • With less supervision. The Guidelines stipulate that Sci-tech
industries such as next-generation information technology, high- Innovation Board adopts an independent trading module and market
end equipment, new materials, new energy, energy saving and display, based on the features of sci-tech companies and investors,
environmental protection, and promotes the deep integration of and establishes a more market-oriented trading mechanism,
the Internet, big data, cloud computing, artificial intelligence with and sets standards for stocks’ daily fluctuations. On the basis of
manufacturing. bidding transactions, the market mechanism is introduced when
• Inclusive listing rules. According to the Guidelines, given the necessary.
characteristics of the sector and the sci-tech enterprises, the The goal of the Sci-tech Board is to encourage Chinese local hi-tech
Science and Technology Innovation Board sets a multi-inclusive enterprises with potential for development to directly get access to
listing condition, allowing potential companies not yet profitable, or finance in the domestic capital market, providing a convenient way
having accumulated unrecovered losses listed on the board. Special for the development and innovation of sci-tech enterprises. In the
equity structure enterprises and red chip enterprises that meet the past, due to various restrictions on the domestic capital market,
relevant requirements can be listed. some companies could not be listed on A-shares, and finally listed on
• Following the principles of marketization. The price, scale and pace Nasdaq or Hong Kong. Most mainland investors could not share the
of new share in the Science and Technology Innovation Board are dividends brought by the rapid development of these enterprises.
mainly determined by market. There is no restriction on the pricing
of new shares. The institutional inquiry, pricing, placement and

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Saudi Arabia: Monsha' at Provides Overseas Workshop for Start-ups

Saudi Small & Medium Enterprises General Authority (Monsha’at) organized Saudi
entrepreneurs to participate in an entrepreneurial camp to be held from April 1 to May 4,
2019 at Draper University in Silicon Valley, USA, in a bid to enhance the expertise of the
entrepreneurs. The Monsha’at hopes to increase the management capacity and expertise
of entrepreneurs, and SME owners by organizing high-quality training courses, in its effort
to increase the amount and the productivity of domestic SMEs. Saudi government has set
the goal that by 2030, the shares of SMEs to GDP will increase from 20% to 35%.

The core of the entrepreneurial training camp is to provide entrepreneurs with integrated
entrepreneurship education related to robotics, artificial intelligence and blockchain
technologies. Through training camp, Saudi young entrepreneurs have the opportunity to
face-to-face exchanges and sharing with entrepreneurs from all over the world, while they
can get finance by showing their startup business and entrepreneurial ideas to investment
companies.