Liang Dingbang, chief advisor to China Securities Regulatory Commission held that China has been equipped with requirements ripe for launching secondary hign-tech board, which would be similar to the Hong Kong GEM.
Liang made the remark at the "Forum on Investment and High-tech Achievements by Tsinghua University" April 25. Liang also introduced China's secondary high-tech board and called for the launch of the board as soon as possible by drawing upon experiences and lessons from its foreign counterparts.
Liang said that Shenzhen Stock Exchange has made a lot of preparations for the board. So far, 300 companies have registered in the board. Most of them are high-tech start-ups and have been profit-making for the last two years with revenues exceeding 2 million yuan and a net asset of over 5 million yuan. They are also eligible even if to list elsewhere.
Liang regarded that the condition for launching the secondary board is basically mature, and it is the prime time to have the board launched. The current market is in a low growth period, thus making investors cautious about market prospect. So the stock price won't be as high as that in the previous two years. The hi-tech boards in the ROK, Japan, Malaysia and Singapore were launched when the market was at robust hike period, and the stock was pinned at very high price, thus incurring the risks.
(People's Daily 05/21/2001)
