Business / Markets

Exchanges consider new methods to assist rapidly growing firms

By Cai Xiao (China Daily) Updated: 2014-03-11 08:57

"The rules of the ChiNext market are under revision, mainly with regard to lowering the threshold for listings and expanding the scope of listings, to attract more quality, high-growth companies," said Chen.

"We will continue to provide good services for micro-sized, small and medium-sized companies with high potential," Yang Xiaojia, chairman of the National Equities Exchange and Quotations, said previously.

Companies listed on the NEEQ don't need a track record of profitability.

Exchanges consider new methods to assist rapidly growing firms

The strategic emerging industry board can be good for domestic high-growth companies because they require funds most in the early development stage, said Hong Hao, managing director and chief strategist at BOCOM International Holdings Co Ltd.

"Establishing, perfecting and implementing laws and regulations for the board is vital to protect the interests of investors," said Hong.

Hong said that funds in the secondary market would be diverted if the new board is established. Companies involved in new energy, environmental protection, high technology and high-end manufacturing will all be attractive.

The United States will continue to be another good market for Chinese high-growth enterprises seeking funding, added Hong.

Requirements for initial public offerings, refinancing, and mergers and acquisitions can be stricter in China than in the US, and the process takes longer, said a banker at a global leading investment bank.

He said the strategic emerging industry board can be popular if it improves on these measures.

The strategic emerging industries include energy conservation, environmental protection, information technology, biology, advanced machinery, new energy, new materials and alternative-fuel vehicles.

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