China moving fast to create small-cap stock market
Wednesday, 26 December 2007
BEIJING, Dec 25 (Dow Jones): China is moving fast to create a small-cap stock market intended to encourage listsings for smaller, fast-growing companies.
The country will also accelerate development of a bond market to give companies non-equity-related fund-raising tools, said Shang Fulin, chairman of the China Securities Regulatory Commission.
Shang was speaking Tuesday at a financial forum in Beijing.
China began mulling a small-cap - or growth enterprise market - in 1999. However, the bursting of the dotcom bubble in 2000 delayed the plan.
Earlier this month, Shang said the securities regulator was preparing share- issuance and listing rules - and working on the technical aspects - for the launch of a small-cap market. Tuesday's comments underscored the regulator's intention to get this done quickly.
Shang also forecast more corporate bond issuance. However, apparently referring to the US mortgage and credit crisis, he added that China has to monitor the interaction between international and domestic financial markets and prevent risk from spreading.
Meanwhile, the Chairman of China Investment Corporation (CIC), the country's new sovereign wealth fund, denied Tuesday CIC is buying into Australian banks.
Asked whether CIC has bought stakes in Australian banks as some have speculated, Lou Jiwei said simply, "We didn't."
Lou's comment followed last week's report by this newswire that China's State Administration of Foreign Exchange has bought small stakes in Australian banks worth about A$1.3 billion (US$1.03 billion) in total.
Analysts have said SAFE might be acting on behalf of CIC or other China entities.
On the weekend, Wei Benhua, vice head of SAFE, denied the regulator has invested in Australian banks. He declined to comment when asked if SAFE may have bought the stakes as a proxy for CIC.
The country will also accelerate development of a bond market to give companies non-equity-related fund-raising tools, said Shang Fulin, chairman of the China Securities Regulatory Commission.
Shang was speaking Tuesday at a financial forum in Beijing.
China began mulling a small-cap - or growth enterprise market - in 1999. However, the bursting of the dotcom bubble in 2000 delayed the plan.
Earlier this month, Shang said the securities regulator was preparing share- issuance and listing rules - and working on the technical aspects - for the launch of a small-cap market. Tuesday's comments underscored the regulator's intention to get this done quickly.
Shang also forecast more corporate bond issuance. However, apparently referring to the US mortgage and credit crisis, he added that China has to monitor the interaction between international and domestic financial markets and prevent risk from spreading.
Meanwhile, the Chairman of China Investment Corporation (CIC), the country's new sovereign wealth fund, denied Tuesday CIC is buying into Australian banks.
Asked whether CIC has bought stakes in Australian banks as some have speculated, Lou Jiwei said simply, "We didn't."
Lou's comment followed last week's report by this newswire that China's State Administration of Foreign Exchange has bought small stakes in Australian banks worth about A$1.3 billion (US$1.03 billion) in total.
Analysts have said SAFE might be acting on behalf of CIC or other China entities.
On the weekend, Wei Benhua, vice head of SAFE, denied the regulator has invested in Australian banks. He declined to comment when asked if SAFE may have bought the stakes as a proxy for CIC.