China to resume listings of qualified FIs, private equity firms on New Third Board

Chinese Yuan notes. Photo: Reuters

China’s securities regulator said on Friday it would resume listings by qualified financial institutions and private equity firms on the country’s over-the-counter (OTC) New Third Board, part of efforts to fund innovation and stimulate growth.

The China Securities Regulatory Commission (CSRC) also said on its official microblog that hedge funds would be allowed to act as market makers on the board. Previously, only brokerages could act as market makers there.

The New Third Board has expanded rapidly over the past two years, and has become China’s biggest OTC equity exchange, currently hosting 7,455 companies.

But the exchange has also suffered from various problems recently, including high price volatility, a shortage of liquidity in many companies, and frequent fundraising by financial firms.

Some financial firms, were barred from listing on the New Third Board, sources told Reuters in January.

On Friday, CSRC said that after studying the issue of fundraising by financial firms, new applicants are now allowed to list under tougher supervision and disclosure rules, as long as they obtain licenses from China’s financial regulators. Qualified private equity firms will also be allowed to list.

CSRC will also allow hedge funds to act as market makers in order to improve “price discovery” as well as financing by small companies.

“Trading has been tepid recently, which is why regulators want to introduce market makers to invigorate the market,” said Wang Jin, partner at Hiways Law Offices. “But whether the measures will work effectively needs further observation.”

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Reuters

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.