For a company to be eligible for listing in the Shenzhen Stock Exchange (SZSE), what is a minimum free float requirement?

For a company to be eligible for listing on the Shenzhen Stock Exchange (SZSE), the minimum free float requirement is indeed linked to the company's total shares outstanding and its overall market capitalization. The requirement stipulates that companies must have a minimum free float of 10% of their total shares if their total market capitalization exceeds CNY 400 million. This free float policy is structured to ensure sufficient liquidity in the trading of a company's stock, thus making it easier for investors to buy and sell shares without significantly impacting the stock price.

The threshold of CNY 400 million is significant because it differentiates between larger companies and smaller, potentially less liquid stocks. By setting a higher free float percentage for companies that exceed this market cap, regulators aim to promote a more active and stable trading environment for larger entities, which often face more scrutiny and have a larger number of shareholders.

Other options do not align with the stipulated regulations for minimum free float requirements on the SZSE. For instance, while free floats of 5% or 15% are common figures in various exchanges around the world, they do not specifically match the SZSE's requirements. The mention of 20% as a requirement is not accurate in the context of companies above the specified market cap threshold