China Pushes Science and Technology Board

State directed capitalism in China is working towards a science & technology board. It is expected that overseas and Hong Kong listed companies could be included. Chinese brokers have been recommending science and technology shares as part of the overall push in these industries.

CN Stock:科创板上市企业将以五大行业为主 是否接纳VIE结构尚在讨论
The Shanghai Securities News reporter was informed that brokers have begun to recommend to the relevant departments the listed companies. Companies in the five major sectors will be encouraged to focus.

  These five areas include:

  First, the new generation of information technology, mainly including integrated circuits, artificial intelligence, cloud computing, big data, Internet of Things and so on.

  Second, high-end equipment manufacturing and new materials, mainly including high-end rail transportation, marine engineering, high-end CNC machine tools, robots and new materials.

  Third, new energy and energy conservation and environmental protection, mainly including new energy, new energy vehicles, advanced energy conservation and environmental protection technology.

  Fourth, Biomedicine, mainly including biomedicine and medical devices.

  Fifth, Technical services mainly refer to enterprises that provide technical services for the above four major areas.

  For the recommended enterprises, it is required to have independent intellectual property rights, and the related technologies are the main driving force for the growth of the company's income. The main income of the enterprises comes from related technologies, with mature R&D systems, R&D teams, and mature business models.

  In addition, there are market rumors that the company will not accept listed companies with red-chip structure and VIE structure. According to the reporter's understanding from the people close to the regulatory authorities, the rumor is not true. The relevant departments of the company's acceptance of the red chip structure and the VIE structure listed companies are still carefully considering the discussion.

  It is understood that the related work of setting up the science and technology board and pilot registration system is in full swing. Fang Xinghai, vice chairman of the China Securities Regulatory Commission, said on the morning of the 12th that the CSRC is guiding and coordinating with the Shanghai Stock Exchange to fully listen to market opinions and opinions of various ministries. "We are working day and night to complete the very important and glorious task handed over to the Party Central Committee and General Secretary Xi as soon as possible."
Checkmate globalists.

Almost every nation runs on state-directed capitalism. In the United States, companies must comply with a long list of regulations that cover everything from economic to social policy. Go pull up a corporate homepage and most of them will have non-business agendas prominently promoted. This is no different than Chinese companies that promote their adherence to central planning goals. In the U.S., nobody is in charge of the self-executing ideological program, but the end effect is the same. You can no more resist the mob in America than the central committee in China.

China's is shifting the Made in China 2025 strategy, but it isn't going away. It is being promoted through new channels. No matter what policy the U.S. demands, China will find a workaround unless that policy is "we won't try to compete with you." And that isn't going to happen.

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