A new securities market for registration-based initial public offerings was launched at a financial forum in Shanghai on Thursday, according to domestic media reports.

First announced by Chinese President Xi Jinping at the China International Import Expo last November, the SSE STAR market is intended to support the development of domestic firms in high-tech and emerging sectors. The new exchange will depart from the country’s current IPO system — which requires official approval for new shares — to a market-based registration system like the Nasdaq Stock Market.

The first batch of companies will be listed on the market and start trading within the next two months, said Huang Hongyuan, chairman of the Shanghai Stock Exchange. Huang said that six companies had been shortlisted from 122 applicants in fields such as information technology, advanced manufacturing, and biomedicine. (Image: VCG)