China's planned Nasdaq-like growth board is ready to assist the
development of start-up firms with high potential as it supports
the country's strategy of encouraging self-innovation, senior
officials said.
Cheng Siwei, vice chairman of the Standing Committee of the
National People's Congress, said during a forum on Sunday in
Shenzhen, Guangdong Province, that the conditions were right to
launch the growth board and "it is better early than late for its
establishment."
Shang Fulin, chairman of the China Securities Regulatory
Commission, said it was a high priority for China to quickly build
the new board to create a multi-layer capital market.
Shang reiterated three key points that are important for the
planned growth board. He said it must smooth the transition of
China's economic growth model from labor- and resource-intensive to
technology- and innovation-based industries.
The growth board must also coordinate smoothly the development
of urban and rural areas and between different regions to
contribute to China's geographically balanced economic growth, he
continued.
Shang said it must ensure sustainable development and focus on
energy conservation and environment protection.
He said there is an urgent need to set up the growth board
following the emergence of enterprises in new technology, new
material and new energy as well as in the modern service industry
and modern agriculture.
In October, the Shenzhen Stock Exchange asked brokers to
identify companies which planned to sell shares on the planned
growth board and to offer suggestions on building an effective
market as a platform to raise funds for small- and medium-sized
enterprises.
Companies are now required to be profitable for three
consecutive years and generate 30 million yuan (US$4 million) in
collective earnings during the period before they could list their
shares. Cumulative revenue in the three-year period must reach 300
million yuan.
The Shenzhen bourse established the Small- and Medium-sized
Enterprise Board in 2004 but didn't lower the listing criteria.
The three-year earnings requirement may be cut to 10 million
yuan for the planned growth board, according to earlier
reports.
(Shanghai Daily December 4, 2007)
