New stock board should aim for flexible listing rules: PwC

BEIJING -- A new stock board Chinese regulators plan to launch will help support innovative and tech-intensive start-ups if it scraps profitability requirements for listed companies, said accounting firm PricewaterhouseCoopers. Though stock markets on the Chinese mainland are already divided, with three boards listing large enterprises, small and medium firms and tech companies, the profitability rules apply to all listed companies. A tumultuous market over the summer put new stock offerings on hold in China's domestic stock market, leaving hundreds of companies waiting in the IPO pipeline. Instead of using profitability to determine the eligibility for listing, Chen said the new board could consider a number of indicators, including a company's market capitalization, revenue and cash flow when deciding whether a company can offer shares in the country's stock market.