Members of the Issuance Examination Committee of China Securities Regulatory Commission (CSRC) recently proposed raising the listing threshold for companies applying for an initial public offering on ChiNext, China's start-up board, requesting that applicants should show a profit of no less than 30 million yuan for the previous year, Moneyweek reported Monday, citing an unidentified source with an investment bank.
If the proposal is approved, a fast-growing company with an accumulated profit of 10 million yuan for the previous two years, the amount currently required by the committee, may still fail to get the green light for its IPO.
Industry insiders said this new trend was in line with the regulators' request to increase the quality of enterprises being listed on ChiNext, the report said.
