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By Yin Lei

Local governments and investment institutions in China are busy cultivating promising companies with the potential to go public at the upcoming Sci-Tech Innovation Board, said a report of China Securities Journal on Thursday.

Local governments in China have directed tremendous attention to this new board under the Shanghai Stock Exchange (SSE) ever since its establishment was announced in early November.

An official from Jiangsu Province in eastern China said the local government had shortlisted an array of promising businesses and invited third-party entities, such as intermediary agencies and investment institutions, to offer them related professional services. In talent recruitment and R & D resources, these companies also enjoy robust support.

Xi’an, a city in northeastern China, had selected 30 local hi-tech companies that stand a good chance of getting listed at the new board via the registration-based floatation system, said Wang Li, an official of the city’s financial office.

Anhui Province in eastern China announced cash rewards to private companies that successfully list their shares at a domestic or overseas exchange, including the forthcoming Sci-Tech Innovation Board.

Promising candidate companies for the Sci-Tech Innovation Board are also gaining favor with investment entities.

Multiple institutions specializing in venture capital investment and equity investment have been quick enough to set up funds dedicated to such companies. Some of these institutions have completed the related fundraising.

Most of these funds are expected to target hi-tech players specializing in pharmaceutical biotechnology, chips and big data, among others.

The primary market has been quite sluggish recently due to the slump at the secondary market, and the new board is giving it some positive vibes, said an investment advisor based in Shanghai.

Some market analysts also cautioned against hasty action as it would take time for listed companies at the new board to develop and succeed.