|
The
new board will set higher thresholds for listing candidates than
Shenzhen's Nasdaq-style ChiNext.in terms of financial conditions
and market capitalization, the Shanghai Stock Exchange said
earlier this year.
The State Council will increase the number of companies listed
on the "New Third Board", the country's most active
over-the-counter equity exchange, and explore a pilot program
that will allow companies listed on the New Third Board to
transfer to ChiNext, the cabinet said in an online statement
after its weekly meeting.
As part of efforts to speed up financial reforms, the cabinet
said it would gradually allow qualified financial institutions
to apply for securities licenses as long as risks generated from
such operations are sufficiently isolated, and would explore the
mixed operation of securities, fund and futures companies.
The cabinet also said it would expand the China Insurance
Security Fund's investment in the capital market, and enhance
the investment and financing capability of trust companies and
bank wealth management funds.
Laws and regulations related to start-up firms with "special
ownership structure" will be improved, the cabinet said, in a
bid to promote domestic listing.
Many Chinese companies, including technology start-ups and
Internet giants such as Alibaba Group Holding Ltd <BABA.N>,
Baidu Inc <BIDU.O> and Tencent Holdings Ltd <0700.HK>, have
adopted the so-called variable interest entity (VIE) structure.
As foreign ownership in China's Internet sector is blocked and
start-ups have difficulty meeting profitability requirements to
list onshore, the VIE structure was developed to satisfy the
ownership requirements of overseas security regulators without
breaking Chinese law.
(Reporting by Shu Zhang, Samuel Shen and Kevin Yao; editing by
Jason Neely)
[© 2015 Thomson Reuters. All rights
reserved.] Copyright 2015 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed. |
|
