Shenzhen GEM receives over 100 applications

More than 100 companies submitted applications on Sunday to float shares on the long-awaited Shenzhen second board, the South China Morning Post reported. The China Securities Regulatory Commission received 108 applications yesterday for the Nasdaq-style Growth Enterprise Market (GEM) board expected to launch in October, according to state media. The applications were focused primarily in the the new energy, materials, environment, apparel, medicine and digital information sectors. Companies on Shenzhen’s GEM will face stricter disclosure rules and limits on stock sales compared to firms listed on the Shanghai and Shenzhen main boards, but will also have lower revenue and earnings requirements. The regulator said it would take three months to inspect each company’s application. Analysts have said that up to 150 companies will list on the new board this year; there are currently 170 companies listed on Hong Kong’s GEM board.