NEEQ's tighter listing norms spook PE firms

China's securities regulator last week lifted its January ban on private equity firms from raising funds on the National Equities Exchange and Quotations, but the latter's new listing requirements could mean not many may be able to list on it.

The new listing norms of the NEEQ, also known as the New Third Board, could mean very few of the PE funds seeking to list would meet the new minimum assets requirement.

The norm stipulates that PE funds should have had assets worth 5 billion yuan ($760 million) under management for the last three years on average. Similarly, venture capital firms should have had assets worth 2 billion yuan under management for the last three years on average.