An investor tracks A-share performance in Fuzhou, capital of East China's Fujian Province. Photos: CNSphoto

A year after the first batch of 18 registration-based IPOs debuted on the ChiNext board at the Shenzhen Stock Exchange on August 24, 2020, the milestone reform was marked on Tuesday.

As of Friday, there were 1,011 companies on the ChiNext board, China's NASDAQ-style board of growth enterprises, of which 182 were listed under the new registration system, accounting for 18 percent, according to a report by media outlet stcn.com.

Moreover, 182 companies listed under the registration system raised a total of 140.147 billion yuan ($21.63 billion) of initial funds. The total market value of the 1,011 ChiNext listed companies reached 13.15 trillion yuan, said the report.

Statistics also showed that over the past year, the growth rate of the ChiNext Index was as high as 25.12 percent, far exceeding the performance of other major indexes in the market. The Shanghai Composite Index rose 2.85 percent and the Shenzhen Component Index rose 7.85 percent during the same period.

Transactions on the ChiNext board increased substantially with average daily turnover exceeding 200 billion yuan in the past year. Prior to the reform, the daily turnover of the board was less than 200 billion yuan, and it was even less than 100 billion yuan on most trading days before 2019.

The reform has brought groundbreaking changes for the board, in that companies hoping to list on the exchange no longer need to get approval from the regulators. It also largely eased profitability requirements, though companies that don't make money still need to wait another year to apply for ChiNext IPOs. 

In addition, there are no price limits during the first five trading days for a newly listed stock. After that, shares will be allowed to rise or fall up to 20 percent during a trading session, compared to 10 percent previously.

The reformed ChiNext has mainly served growth-oriented innovative and start-up enterprises, and it has proved its ability to push China's industrial upgrading over the past year as it is more accommodative to new economy companies, industry observers told the Global Times.

Contemporary Amperex Technology Co, a global leader in lithium-ion battery development and manufacturing, has become the first company with a market value of over one trillion on the ChiNext this year.

"The new system has played a significant role and injected great vitality into the country's A-share market. The trading volume of A-shares has exceeded one trillion for more than 20 consecutive trading days," a market watcher surnamed Li, told the Global Times on Tuesday.

Global Times