Source: CCTV.com

03-24-2008 09:01

On Friday, the China Securities Regulatory Commission started soliciting public opinions on a new stock market it will launch for small start-ups.

Experts say the Growth Enterprise Board, with lower threshold requirements, will help boost the development of venture capital investment, and will provide more opportunities for small and medium sized enterprises to raise funds.

On Friday, the China Securities Regulatory Commission started soliciting public opinions on a new stock market it will launch for small start-ups.

Experts pointed out that venture capital and the growth enterprise board are key factors for the development of small start-ups internationally. In China, however, the scale of venture capital investment is still far less than the actual demand. But the launch of the growth enterprise board will promote the development of venture capital.

Chen Dongqi, Academy of Macroeconomic Research of NDRC said "Through the growth enterprise board, venture capital investors will be able to get a quick exit from the market. This will encourage more investment firms to put their money into small and medium sized companies."

He said once firms get public listings, their operations will be more transparent, and this will encourage the investment of venture capital. Therefore, the difficulty of fund raising will be tackled. The new board will not only provide more opportunities for investors, but will also help regulate business activities of listed firms.

Chen Dongqi said "In the near term, the growth enterprise board might draw away some capital from the main board. But from a long term perspective, it will bring more opportunities to investors and stimulate the market."

To reduce risks that investors might encounter, the securities regulator has stated that there would be a separate assessment committee to oversee the growth enterprise board, with more members compared with the main board's listing committee.

 

Editor:Xiong Qu