China's "second board'' stock market, soon to be launched in southern Chinese booming city of Shenzhen, will list 50-60 technology shares in its first placement, sources said.
At present, the 26 stock underwriters, approved by the State Securities Regulatory Commission, are busy selecting the 50-60 shares out of more than 200 applicants to be the first batch listed on the domestic second board, the sources said.
The "second board'' market will be named China's growth enterprises market (GEM), according to the sources.
Each of the 26 securities companies was asked to recommend 3-5 enterprises to be first listed on the GEM, and after the National Day holidays, the entries will have to undergo examination and approval of related government departments, including the State Securities Regulatory Commission, the sources said.
It is learned that the majority of the enterprises nominated are from hi-tech industries, such as telecommunication, bio-pharmacy, bio-chemical agriculture, and IT. And, most of the recommended enterprises have reported good economic performances.
Stock insiders admit that stock underwriters have some difficulties in choosing the companies, because the country lacks explicit laws on stock market regulation.
And, some enterprises currently listed on the two stock markets in Shanghai and Shenzhen may be shifted to the GEM, said the sources.
(China Daily 09/28/2000)
