The CSRC issued the Tentative Measures for the Administration of the Initial Public Offering of Shares and the Listing thereof on the Growth Enterprise Market on March 31. The measures allow initial public offerings to take place on or after May 1 2009.
It was also announced on the CSRC website that the Commission and the Shanghai and Shenzhen stock exchanges will soon issue further rules to supplement the measures.
According to the new rules, which run to 58 articles, issuers wishing to list on the board must be companies limited by shares operating for at least three years and profitable for the last two consecutive years. Their net profit in the last two years should amount to at least Rmb10 million (US$1.46 million), with profits continuing to grow.
Observers have speculated that the measures were issued quickly in order to give small and medium-sized companies a way to finance their operations.(Apr. 21th 2009)