Shenzhen Plans to Support the Listing of Unicorn Companies

12

Recently, the Shenzhen Development and Reform Commission has solicited opinions from the public on the plan to “accelerate the birth, expansion and prosperity of various market players in Shenzhen to stimulate market vitality and social creativity”.

The enterprises supported by the draft cover different stages, such as small- and medium-sized enterprises, enterprise above designated size and listed companies. In particular, it is proposed that innovative and unicorn enterprises will be sought out, and all-round guarantees will be provided in financial services, industrial spaces, digital empowerment and government services for them.

According to one research report, the number of potential unicorn enterprises in China reached a new high in 2020, totaling more than 425, and the number of potential unicorns in Shenzhen reached 32, ranking fifth, behind Beijing, Shanghai, Suzhou and Hangzhou.

Shenzhen’s support for unicorn enterprises reflects its determination to consolidate its level of innovation in China.

Shenzhen will form a unicorn enterprise evaluation committee in conjunction with third-party high-end think tanks and venture capital institutions, focusing on emerging industries such as biomedicine and health, semiconductors and integrated circuits, intelligent robots and smart cars.

The draft also pointed out that Shenzhen will support the listing and trading of unicorn enterprises, assist overseas listed unicorn enterprises to seek to dual listing in China, and strive for overseas unicorn enterprises to settle branch offices in China. Shenzhen will also encourage enterprises to broaden financing channels in the form of IPO, refinancing and bonds.

The draft has made several arrangements to promote the development of innovative enterprises. First of all, Shenzhen will select a group of small- and medium-sized enterprises from the fields of core components and materials, advanced craft, and basic software.

Secondly, Shenzhen will improve the mechanism of searching and cultivating enterprises at different growth stages. Finally, Shenzhen will encourage enterprises to sign training agreements with students and vocational colleges, and give monthly subsidies to students to support their studies.