China will gradually relax listing requirements for small and medium-sized enterprises on the new Shenzhen second board to provide more opportunities for companies to raise capital, said Xie Geng, a director with the China Securities Regulatory Commission.
Xie's remarks, made during a recent forum, were published in the Shanghai Securities News and Securities Times.
"For a certain period, China will concentrate on system innovation and enhance market supervision based on the new Shenzhen board for SMEs, and will gradually relax listing requirements for firms in various aspects, such as issuance size and profit records," Xie said.
Xie said the current listing requirements for second board members, similar to their main board peers, prevent most SMEs from seeking public listings.
All companies that aim for a second board listing are required to have a minimum equity capital of 50 million yuan and a three-year track record of profitability.
