International Law

New Rules for China?s NASDAQ

By Stan

With the private equity and venture capital markets cratering, there are a ton of startups here that are in need of capital. Hopefully by the time the exchange actually gets up and running, the economy will be in better shape, allowing it a chance of success.

Details from AFP:

China’s securities regulator on Tuesday issued rules for initial public offerings on a long-waited Nasdaq-style second board aimed at helping the country’s cash-hungry start-up companies.

Firms seeking to list on the second board, the growth enterprise market (GEM), should have a net profit of at least 10 million yuan (1.46 million dollars) over the two-year period before listing, the China Securities Regulatory Commission said on its website.

The watchdog said it could not say when it would start accepting applications, only that it would be at an “appropriate time”.

It said there was still work to be done including the establishment of trading rules, setting up a review committee for the board and training traders, lawyers and accountants on how the board would operate.

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Full post as published by China Hearsay on March 31, 2009 (boomark / email).