China is to launch a Nasdaq-like growth board to assist the development of start-up companies this year, according to the Shenzhen Stock Exchange.

"We will speed up the development of small and medium-sized companies and smoothly launch the Growth Enterprise Board this year," said Chen Dongzheng, chairman of the Shenzhen bourse.

The board will lower requirements for initial public offerings by innovative and fast-growing firms, and it is aimed at helping smaller firms.

The State Council has urged the setup of the board as part of the country's efforts to stabilize its capital market to protect the economy from the ongoing financial crisis.

The China Securities Regulatory Commission issued draft rules early last year for the board. Candidates must still meet certain requirements, such as being established for three years and reporting annual profit of at least 10 million yuan in the previous two years.

(Shanghai Daily January 8, 2009)