Chongqing - On April 10th, Chongqing Dencare Co., Ltd. debuted on the main board of the Shenzhen Stock Exchange, becoming the first Chongqing-based stock to be registered under the registration-based mechanism and also the first A-share listed Chongqing company this year.

Dencare became the first A-share-listed Chongqing company this year. (Photo/Chongqing Local Financial Supervision and Administration Bureau)

Number of newly listed companies to exceed 2022

Yang Delong, a financial commentator, believes that, on the one hand, the full implementation of the registration-based mechanism will significantly impact the ecology of the A-share market, where value investing will become more important, and funds will increasingly prefer companies with good performance.

On the other hand, the strict implementation of the new delisting rules improves the quality of listed companies in the A-share market as a whole, which marks the gradual maturity of the A-share market and the entry into a new stage of the A-share market.

Just 20 days prior, Chongqing Wangcheng Technology and Millison Technologies Inc. successfully registered for IPOs, and five other Chongqing-based companies have submitted IPO registration applications. The number of newly listed companies in Chongqing this year is expected to exceed that of 2022.

Different companies have encountered varying issues like accounting treatment during the listing process. Under the registration-based mechanism, the dynamic adjustment of audit rules also poses new challenges for companies seeking to go public.

Chongqing Equity Service Group, a specialized service organization to promote enterprise listings, has organized experts from the Shenzhen Stock Exchange to guide Dencare and helped the senior management team obtain relevant qualifications.

According to the official website of the Shenzhen Stock Exchange, it took approximately 50 days from the acceptance of Dencare's IPO application to its formal listing.

There are nearly 5,000 equity trusteeships and listing companies like Dencare in Chongqing Equity Service Group. Currently, it has nurtured 19 companies that have gone public, including 18 A-share listings, accounting for 53% of the total number of domestically listed companies in Chongqing during the same period.

Increased awards for local companies successfully going public

Chongqing has also made efforts in policy and management to support local enterprise listings.

In 2022, Chongqing selected 118 key enterprises and divided them into three categories to promote listing in different stages.

Overcoming the obstacles, the Chongqing Local Financial Supervision and Administration Bureau led the establishment of a special working group for enterprise listings to coordinate work in all aspects of the listing process. In 2022, the Local Financial Supervision and Administration Bureau and the Chongqing Municipal Finance Bureau jointly increased the award amount from 2 million to 8 million yuan for companies successfully going public.

In the same year, the number of newly listed Chongqing companies that passed the review on the Shanghai Stock Exchange STAR Mark reached a historical high of 18. The total first-time financing and refinancing for Chongqing-listed companies was 31.6 billion yuan, a year-on-year increase of 79%.

According to the Chongqing Local Financial Supervision and Administration Bureau, this year, Chongqing aims to add 10-12 new listed companies to achieve a goal of more than 100 listed companies at home and abroad.