Reg­u­la­tor to re­vamp rules for ‘3rd board’

China Daily (Hong Kong) - - BUSINESS - By CAI XIAO caix­iao@chi­nadaily.com.cn

The China Se­cu­ri­ties Reg­u­la­tory Com­mis­sion will re­vamp the rules of the Na­tional Eq­ui­ties Ex­change and Quo­ta­tions board at the end of this year, and it will work on the eq­uity ex­change’s mar­ket maker sys­tem in the sec­ond quar­ter of 2014, the CSRC said on Fri­day.

The Na­tional Eq­ui­ties Ex­change and Quo­ta­tions, the so-called “third board”, is an eq­uity ex­change for small and medium-sized en­ter­prises.

Deng Ge, a spokesman of the CSRC, said the agency will re­vise, re­lease and im­ple­ment the rules on un­listed pub­lic com­pa­nies.

About 2,000 en­ter­prises are in line for ap­proval to join the board.

Af­ter the rules are re­leased, which is to oc­cur by the end this year, the third board will start tak­ing com­pa­nies’ ap­pli­ca­tions.

The State Coun­cil, China’s cab­i­net, re­leased a state­ment this month on the Na­tional Eq­ui­ties Ex­change and Quo­ta­tions, in which it said mi­cro-, small and medium- sized en­ter­prises from around the na­tion could be listed on the eq­uity ex­change sys­tem.

Pre­vi­ously, only un­listed en­ter­prises from four hightech in­dus­trial parks in Bei­jing, Tian­jin, Shang­hai and Hubei’s pro­vin­cial cap­i­tal of Wuhan could ap­ply to trade on the third board.

The CSRC said new trad­ing pro­ce­dures for the third board, in­clud­ing a mar­ket maker sys­tem, will be launched in the sec­ond quar­ter.

Li Yizheng, a vice-pres­i­dent at China Se­cu­ri­ties Co Ltd, said the mar­ket maker sys­tem brings vi­tal­ity to a mar­ket. Se­cu­ri­ties firms will seek good com­pa­nies un­der this sys­tem, which re­quires them to main­tain a sta­ble and liq­uid mar­ket for a par­tic­u­lar se­cu­rity, be­cause they will bear the risk of loss.

Deng also said the CSRC is for­mu­lat­ing merger and ac­qui­si­tion rules for un­listed pub­lic com­pa­nies.

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.