Widely expected by the end of the year, and reported in state media yesterday ( Friday), the Chinese State Council today confirmed they will expand and liberalise access to its over-the-counter (OTC) market to all qualified small and medium-sized enterprises.
The China Securities Regulatory Commission, acting under instructions from the State Council, will eliminate approval procedures for applicant companies with 200 or fewer shareholders.
The announcement also said institutional investors will be encouraged to participate in particular brokerages, insurance companies, investment funds and foreign funds.
China’s primary OTC market was originally launched in Beijing in 2006, with around 200 firms trading on the platform, and then expanded to Shanghai.
China’s reform programme is seemingly underway in a bit of a hurry.
Reuters has more here
