China issues first veto on company's application for listing on tech board

China securities regulator has issued the first veto on a company's registration for listing on the STAR Market, a Nasdaq-style board which started trading in July.

If the company, Eversec (Beijing) Technology Co., Ltd., wanted to apply for listing on the board again, it can submit application documents six months after the date of the rejection, according to the China Securities Regulatory Commission (CSRC).

Shanghai Mayor Ying Yong attends the listing ceremony of the first batch of companies on the SSE Star Market in Shanghai, on July 22, 2019. [File Photo: IC]

The CSRC said when reviewing the company's IPO application, it found the company has weak accounting basic work and the company fails to disclose the correction of relevant accounting errors as required by the prospectus.

The STAR Market started trading on July 22 and so for has 28 listed companies.

The board, designed to focus on companies in the high-tech and strategic emerging sectors, will ease the listing criteria, such as allowing firms that have yet to make a profit to list, but they will adopt higher requirements for information disclosure.