500 firms ready for leap to GEM listings

A capital market leap may be in store for as many as 500 small enterprises to list on the Growth Enterprises Market, or GEM, board on the Shenzhen Stock Exchange after meeting financial rules recently laid out by China's stock authorities.

Clearer rules for listing on GEM, the Nasdaq-style ChiNext board, from the Beijing-based National Equities Exchange and Quotations, or NEEQ, open up the potential for wider access to capital in industries seen as cutting edge such a biotechnology, software and finance.

A Nov 20 circular from the China Securities Regulatory Commission gave guidance on two key financial requirements for companies now listed on NEEQ to obtain a GEM listing, profitability and net assets.