CSRC approves 8 companies to list on ChiNext

Eight companies will feature in the second batch of listings on ChiNext, China’s Shenzhen-based small board, the Wall Street Journal reported. Analysts said the relatively small number of approvals – 28 firms listed when ChiNext opened in late October – reflects the difficulties in finding suitable candidates for the market. Although ChiNext was designed to help small high-tech and innovation-oriented startups raise funds, the 28 debutants were generally stable and well-established enterprises, including some state-controlled players. When the market opened, some stocks shot up by as much as 210% on the first day, setting a tone for speculation and volatility. It is thought that the China Securities Regulatory Commission has consequently been more careful in selecting the second batch of companies. Six of 14 applicants were turned down compared to only two of 31 the first time around.