Regulator inquires into OTC bourses
By Zhang Yi |
October 26, 2010, Tuesday
|
Print Edition
Print Edition
CHINA'S securities regulator is doing research on regional over-the-counter equity bourses to study setting up a national supervisory regime, sources said yesterday.
A team under the China Securities Regulatory Commission has toured OTC exchanges in Hangzhou, Zhejiang Province, and Shenzhen, Guangdong Province, in the past two months and collected information about their operations, according to the sources.
The market watchdog may also visit other OTC markets in cities such as Shanghai and Tianjin, the people said. The results of the examination will lay the foundation for rule drafting in the future, they said.
"Although the research was preliminary, it showed the regulator's determination to improve the OTC markets and help more start-up firms raise capital," said a securities source close to the CSRC. "Currently, the regional markets are not well connected and lack efficient communications."
China launched its first OTC market in June 2001 in Beijing to accommodate stocks de-listed from the main boards in Shanghai and Shenzhen as well as stocks formerly listed on the Securities Trading Automated Quotations network and National Electronic Trading system.
STAQ and NET, set up in the 1990s for firms that could not meet main-board listing conditions, were closed in 1999 because of rampant irregularities. In 2006, the Beijing-based OTC board was turned into a market where technology firms in Beijing's Zhongguancun Technology Park could trade shares.
In July, Shanghai set up its OTC market in the Zhangjiang Hi-Tech Park in Pudong New Area with the aim to help start-up firms in Shanghai and other cities in the Yangtze River Delta region raise money.
Other OTC markets are in the cities of Tianjin, Shenzhen and Hangzhou.
Chongqing and Wuhan are also mulling plans to set up regional OTC markets for non-listed companies to sell their stakes.
"Every local OTC market wants to be bigger and bigger and competition is inevitable," said Luo Zhiwei, an Everbright Securities Co trader. "It's the regulator's top priority to ensure market order and efficiency."
A team under the China Securities Regulatory Commission has toured OTC exchanges in Hangzhou, Zhejiang Province, and Shenzhen, Guangdong Province, in the past two months and collected information about their operations, according to the sources.
The market watchdog may also visit other OTC markets in cities such as Shanghai and Tianjin, the people said. The results of the examination will lay the foundation for rule drafting in the future, they said.
"Although the research was preliminary, it showed the regulator's determination to improve the OTC markets and help more start-up firms raise capital," said a securities source close to the CSRC. "Currently, the regional markets are not well connected and lack efficient communications."
China launched its first OTC market in June 2001 in Beijing to accommodate stocks de-listed from the main boards in Shanghai and Shenzhen as well as stocks formerly listed on the Securities Trading Automated Quotations network and National Electronic Trading system.
STAQ and NET, set up in the 1990s for firms that could not meet main-board listing conditions, were closed in 1999 because of rampant irregularities. In 2006, the Beijing-based OTC board was turned into a market where technology firms in Beijing's Zhongguancun Technology Park could trade shares.
In July, Shanghai set up its OTC market in the Zhangjiang Hi-Tech Park in Pudong New Area with the aim to help start-up firms in Shanghai and other cities in the Yangtze River Delta region raise money.
Other OTC markets are in the cities of Tianjin, Shenzhen and Hangzhou.
Chongqing and Wuhan are also mulling plans to set up regional OTC markets for non-listed companies to sell their stakes.
"Every local OTC market wants to be bigger and bigger and competition is inevitable," said Luo Zhiwei, an Everbright Securities Co trader. "It's the regulator's top priority to ensure market order and efficiency."
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