With China's economic development entering a new stage, relying on science and technology to promote economic development has become widely accepted. The securities market is an important channel for the financing of science and technology enterprises. In June 2019, the Science and Technology Innovation Board opened the gate for China's securities market. The Shanghai Stock Exchange had made some special arrangements for companies listed on the Science Innovation Board, such as relaxing the price fluctuation limit, adjusting the number of individual filings, opening margin trading and short selling on the first day of listing, and introducing after-hours fixed price trading. The establishment of the Science and Technology Innovation Board as well as the establishment of related systems are important steps by the Shanghai Stock Exchange to support the financing of science and innovation enterprises. Looking at overseas financial markets, NASDAQ in the United States has always been the preferred market for the listing of scientific and technological enterprises, among which many excellent Chinese companies are included. Understanding how NASDAQ supports science and innovation enterprises to help enterprises to develop could inform similar exchanges elsewhere.
Nasdaq’s role in promoting the development of science and innovation enterprises has four important features:
- firstly, the design of a multi-layer capital market, in which science and innovation companies can be flexibly listed in different sectors according to their own development and can be transferred to different boards freely with the development of these enterprises.
- Secondly, making special arrangements for the listed financing of science and technology enterprises, and paying more attention to the future development prospect of enterprises in the setting of indicators.
- Thirdly, provide more diversified financing methods, serving various companies and financial institutions through technical means, and unblocking financing channels.
- Fourthly, continuing to upgrade the level of technology and strengthen financing support for small and medium-sized enterprises.
