The nation's Nasdaq-like growth board won't be launched in the near term, according to the Vice Chairman of the China Securities Regulatory Commission Yao Gang.
"To solicit public opinion for the growth board does not mean it will be launched very soon," Yao said at a seminar to seek expert opinion on the planned board, China Securities Journal reported yesterday. "It needs a period of time to review related rules and adjust other preparations."
Last Friday, the securities regulator issued a statement on its Website to solicit public opinion on the board, which is designed to aid fast-growing start-up companies to get funds. It was seen as a sign that China was in the last phase for introduction of the board.
Some analysts forecast it will be launched as early as next month and no later than June.
"After we finish collecting public opinion on March 31, we need about a week to digest them and then seek approval from the State Council for the reviews," said Yao at the seminar. "Also, we should adjust related rules such as requirements for initial public offerings. Thus, it will require a certain period of time to launch the growth board."
He did not speculate on the exact time.
Yao's remarks were made amid big corrections in the stock market this week, partly due to investors' concern that the planned board may distract capital and dilute liquidity on the main boards.
The Shanghai Composite Index cracked 3,500 yesterday and has dropped more than 30 percent since the beginning of this year.
On Tuesday, Yao said in an online interview that the launch of the board won't exert a huge negative influence over the main boards as China has enough capital in the market.
He dismissed concerns that the board's launch will be bad news for main boards as "the market does not lack in capital, but good investment choices."
(Shanghai Daily March 28, 2008)
