China's securities regulator has required its local offices to prepare well for the growth enterprise board since it can come out "at any moment", and related regulations have been shaped.
"A set of regulations related to the growth enterprise board have been shaped, including the prospectus, examination process and the system of recommenders," China Business News reported On Dec 29, citing an unnamed source.
The China Securities Regulatory Commission (CSRC) held an internal conference in December and a senior official required local offices to well prepare for the growth enterprise board as it might come at any moment, the newspaper reported.
The CSRC's Public Company Oversight Committee will be in charge of the stock issuance on the board and 35 officials with the Issuance Examination Committee under the CSRC will be selected to join a special committee for the growth enterprise board, the source said.
"We are cultivating about 10 companies that target going public on the board," said Xue Rongnian, president with Ping An Securities.
"In the bull market of 2007, the PE (price-to-earnings) ratio can be as high as 30 times. Entrepreneurs don't expect such a high PE ratio now and the PE ratio for the hi-tech companies and companies in traditional industries can be 15 times and 12 times respectively at most," Xue said.
(China Daily December 29, 2008)
