Shanghai Stock Exchange - Listing Requirements

Listing Requirements

According to the regulations of Securities Law of the People’s Republic of China and Company Law of the People’s Republic of China, limited companies applying for the listing of shares must meet the following criteria:

• The shares must have been publicly issued following approval of the State Council Securities Management Department.
• The company’s total share capital must not be less than RMB 30 million.
• The company must have been in business for more than 3 years and have made profits over the last three consecutive years. This requirement also applies to former state-owned enterprises reincorporating as private or public enterprises. In the case of former state-owned enterprises re-established according to the law or founded after implementation of the law and if their issuers are large and medium state owned enterprises, it can be calculated consecutively. The number of shareholders with holdings of values reaching in excess of RMB 1,000 must not be less than 1,000 persons. Publicly offered shares must be more than 25% of the company’s total share capital. For company whose total share capital exceeds RMB 400 million, the ratio of publicly offered shares must be more than 15%.
• The company must not have committed any major illegal activities or false accounting records in the last three years.

Other conditions stipulated by the State Council.

• China currently has a preference for domestic firms only to list onto their stock exchanges; India has similar rules. However, China is considering opening up their capital markets to foreign firms in 2010.

The conditions for applications for the listing of shares by limited companies involved in high and new technology are set out separately by the State Council.