Analysts expect changes in the profitability of companies listed on the Shanghai and Shenzhen stock exchanges as they are forced to release two sets of annual reports to comply with new accounting standards. According to rules published by the China Securities Regulatory Commission, from January 1, companies that want to do IPOs or secondary share offerings will have to use global accounting standards as well as Chinese ones. Listed firms' 2006 annual reports will also have to be published using both sets of standards, the South China Morning Post reported. Only companies that have been profitable for the last three years can sell shares. The switch in standards is expected to cause a surge in backdoor listings as companies that appeared profitable under the old standards but are not under the new ones become acquisition targets.