Monday, March 10, 2008

Tianjin mulls OTC stock market

Tianjin, an offshore municipality in east China, plans to establish China's first national over-the-counter (OTC) stock exchange in the Binhai New Area, to boost the city's economy and to provide more options for the small and mid-sized companies to raise fund.

The proposal for the OTC stock exchange has been submitted and gained strong support from China's top economic planner, the National Development and Reform Commission. However, it is still subject to the approval from China's State Council.

If it wins the regulatory approval, more non-listed firms will be able to transfer or trade shares under the supervision of China's Security Regulatory Commission.

According to earlier report, Fan Fuchun, vice chairman of the security watchdog said the debut of OTC stock exchange would follow the Nasda-like stock market in Shenzhen for the mainland start-up firms. But no timetable is disclosed yet.

Binhai New Area is situated in the heart of Tianjin Bohai Economic Zone. It has attracted many international companies, such as Motorola and Toyota Motor, to invest there.

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