The launching of the second board market has been temporarily
postponed largely because of the unstable US-based NASDAQ market
and the under-adjusted main board market.
But the long-awaited second board market will not be aborted, said
Zhou Xiaochuan, chairman of the China Securities Regulatory
Commission.
The current external environment is favorable for introducing the
second board, he said, because the main board market is less
speculative and malpractice has been kept under control.
But he did not give a timetable for the second board's
launching.
Zhou spoke last weekend in Shenzhen at the New Capital Market
Forum, part of the Third China High-tech
Fair.
He
said the government is determined to establish a sound and healthy
capital market so as to boost the high-tech industry.
"The capital market plays a crucial role in pushing forward the
high-tech industry by providing much-needed funds for the
commercialization of new products," he said.
He
also said more financial products and services would be introduced
for the high-tech industry.
"We will continuously strengthen supervision over the listed
companies and expose those releasing false information and
violating market order," Zhou said.
The technical part of the preparations - including the trading
system; revision of security; law and accounting regulations;
education of intermediaries, investors and lawyers - is still under
discussion, Zhou said.
He
denied the possibility of re-opening the main-board market to those
companies that want to get listed in Shenzhen due to the delay of
the second board market.
While capital flow from the main board to the second board is
concerned, Zhou said he had strong confidence in the ability of the
main board to withstand the challenges, given its large size.
Regarding the relationship between China's high-tech industry and
capital market, Andrew Sheng, chairman of Hong Kong Securities and
Futures Commission, said venture capital can broaden fund-raising
channels and lend full support to the industry.
"Given the numerous emerging new technology companies and huge
domestic savings in China, the venture capital market is
promising," he said.
(China
Daily 10/15/2001)