Experts: Second board impact muted

SHANGHAI: The growth enterprise board (GEB) is not expected to pose a strong challenge to China's main board due to its limited financing capital, even though there are temporary concerns on liquidity, industry experts said.

The China Securities Regulatory Commission (CSRC) yesterday said the long-awaited GEB for start-ups to raise capital would start from May 1.

"Given the typical high trading volume in global growth board markets, the launch of GEB will attract much attention and some capital from the main board in the short-term. The shortage of financial products in China has also made investors enthusiastic about innovations like this," Jerry Lou, China strategist at Morgan Stanley.