China to promote development of OTC exchange
China’s securities regulator announced plans to help small companies by promoting the development of the country’s most active over-the-counter equity exchange called the New Third Board.
At a Beijing conference, the China Securities Regulatory Commission (CSRC) said that it plans to categorize companies listed on the New Third Board into two levels, based on the maturity of their business models. It would also encourage brokerages to set up subsidiaries for OCT market-related businesses, reported Reuters.
The CSRC added that it didn’t intend to lower the threshold for investors in the New Third Board, and it also said that listing on the board should not be considered a step toward listing on one of the main boards.