Tianjin Wants to Launch OTC Market
Date:2008/03/10 Source:
The northern Chinese city of Tianjin has applied to launch the country's first national over-the-counter stock exchange to bolster the city's financial strength and expand fund-raising options for small companies.
Li Zhantong, a member of the Chinese People's Political Consultative Conference, said Tianjin CPPCC delegates submitted a joint proposal this year to seek central government approval for the OTC market, according to the Tianjin Information Center.
If permitted, the new market will allow non-listed companies to transfer or trade shares under unified supervision by the China Securities Regulatory Commission.
Tianjin Binhai New Area, located in the heart of the Bohai economic zone and home to investments by big companies such as Motorola Inc and Toyota Motor Corp, was named in the proposal to host the exchange.
"China offers limited tools to raise funds. It is especially difficult for small companies to get finance from existing channels such as commercial banks and main-board stock markets," Li said. "A national OTC stock exchange could greatly ease such pressure.
"If the exchange is established in Tianjin Binhai New Area, it will help to enhance the city's financial power."
The plan for an OTC market in Tianjin has won strong support from the National Development and Reform Commission, China's top economic planner, but still needs final approval from the cabinet, Reuters said yesterday citing the proposal document it obtained.
On Thursday, Fan Fuchun, vice chairman of the China Securities Regulatory Commission, said the regulator plans to launch a national OTC stock market after the establishment of a proposed Nasdaq-like market for Chinese start-up companies in Shenzhen.
But Fan did not give a timetable for the planned OTC market.
China's mainland has main stock exchanges in Shanghai and Shenzhen, as well as a board for small and medium enterprises in Shenzhen. | |
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