Growth Enterprise Board to start trading on October 30th
The long-awaited Nasdaq-style Growth Enterprise Market will start trading on October 30, despite earlier announcements that it would begin this week.
Officials from the Shenzhen Stock Exchange said the 28 companies to list on the board will publish registration statements on the on October 26 after they get listing approval.
The 28 companies, which will share sales to mainland Chinese investors and qualified foreign investment institutions (QFII) include pharmaceutical, new energy, software and electronics companies. They have also raised a combined RMB15.48 billion (US$2.26 billion), twice the amount planned.
Price-to-earnings for the 28 firms is however very high at 55 times, compared to an average 36 times for IPO on the main Chinese boards so far this year. As a result there is concern that the shares will drop on debut.
The Shenzhen Stock Exchange has ruled that any share on the new board that increases or decreases by more than 80 percent on the first day of trading will be suspended until three minutes before the market's close
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