The proposed growth board, which has been in the pipeline for ten years and designed for high-growth, start-up firms to conduct public listings to raise funds for expansion, is unlikely to be launched this year, an official from the China Securities Regulatory Committee (CSRC) told the China Business News.
"It will be next year at the earliest," said the official.
The move is regarded as an important step to create a multi-layer capital market in China.
The CSRC has held several meetings recently to solicit opinions on regulations on the growth board. The most-argued issue concerns profit and revenue thresholds needed to allow start-up companies to sell public shares.
Companies must post a cumulative profit of at least 10 million yuan for the past three years and at least 5 million yuan for the latest financial year, proposed Wang Shouren, Secretary of Shenzhen Venture Capital Association.
Wang also called for stricter information disclosure rules for the new board than that for the existing Small and Medium-sized Enterprise Board and suggested increasing the liabilities of applicant recommenders.
For more details, please read the full story in Chinese (http://www.china-cbn.com/s/n/000002/20071025/020000058500.shtml).
(China.org.cn October 25, 2007)
