Home
News
In Focus
Business
Metro
Nation
World
Sports
Feature
Opinion
View more »Opinion Columns
Wan LixinOpinion deputy editor of Shanghai Daily
Restaurants get off to a quick start thanks to game-changing policies
High service charges on event ticket refunds call for further regulation
Sunday
- Subscribe
Related News
Date set for investors in GEM
By Winny Wang |
July 3, 2009, Friday
|
Print Edition
Print Edition
INVESTORS can apply to open an account to trade stocks on the growth-enterprise market on July 15, a further step toward the introduction of the long-anticipated Nasdaq-patterned financing platform.
China's securities regulator issued the threshold for investors on Wednesday, regulating that investors who have traded stocks for more than two years need to sign an agreement with the brokerage that they are aware of risks on the new board for start-up firms.
Other investors are required to write a special notice to indicate that they are willing to undertake risks, according to a statement on the Shenzhen Stock Exchange. The rules will take effect on July 15.
High risks exist in the GEM, which is not suitable for all investors, so the brokerages must know clearly investors' identification, assets and income conditions, the China Securities Regulatory Commission said.
"I will buy shares in the growth-enterprise market as high risks can generate high returns, but the threshold for investors is too low," said an individual investor surnamed Lu, who has traded stocks for a decade.
"The regulator should restrict investors who have traded stocks for less than five years and own assets less than 1 million yuan (US$146 million) from opening an account for the new board," he said.
Companies can list on the GEM with annual net profits of at least 10 million yuan in the previous two years, or 5 million yuan for one year with sales of at least 50 million yuan.
In contrast, companies on the main board must have net profits of at least 30 million yuan in the previous three years or total sales more than 300 million yuan.
Companies on the GEM will face stricter disclosure requirements and limits on stock sales than those on the main boards.
Yao Gang, vice chairman of the CSRC, hinted earlier that the GEM would be launched after next month.
China's securities regulator issued the threshold for investors on Wednesday, regulating that investors who have traded stocks for more than two years need to sign an agreement with the brokerage that they are aware of risks on the new board for start-up firms.
Other investors are required to write a special notice to indicate that they are willing to undertake risks, according to a statement on the Shenzhen Stock Exchange. The rules will take effect on July 15.
High risks exist in the GEM, which is not suitable for all investors, so the brokerages must know clearly investors' identification, assets and income conditions, the China Securities Regulatory Commission said.
"I will buy shares in the growth-enterprise market as high risks can generate high returns, but the threshold for investors is too low," said an individual investor surnamed Lu, who has traded stocks for a decade.
"The regulator should restrict investors who have traded stocks for less than five years and own assets less than 1 million yuan (US$146 million) from opening an account for the new board," he said.
Companies can list on the GEM with annual net profits of at least 10 million yuan in the previous two years, or 5 million yuan for one year with sales of at least 50 million yuan.
In contrast, companies on the main board must have net profits of at least 30 million yuan in the previous three years or total sales more than 300 million yuan.
Companies on the GEM will face stricter disclosure requirements and limits on stock sales than those on the main boards.
Yao Gang, vice chairman of the CSRC, hinted earlier that the GEM would be launched after next month.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
