Although China’s economy and stock market size has been growing fast, the underlying capital market mechanisms are not as advanced.
China has made several efforts to modernize its stock market, but mostly remained in the previous framework or didn’t become a game-changer.
This time is different.
Regulatory approvals are replaced by general registration processes (guidance and regulations still there). Any company that fulfills certain requirements can go public.
Pre-profit companies can go public. Previously, the stock market was heavily leaning towards sectors with profits like banking.
Different share structures are allowed. Super voting power is allowed.
Lock-up period is higher than NASDAQ’s.
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Attached is a presentation from a major investment bank in China.