China's OTC market becomes more versatile

Over the weekend, China's top securities regulator released a new set of rules which allows for more flexibility in the country over the counter market, known as the "new third board."

According to this lastest set of regulations, the OTC equity market can decide its own listing criteria as well as transfer equities across regions. At the same time, firms who are delisting and companies listed on the Securities Trading Automated Quotation system and NET system, will both be under the management and supervisor of the new third board: the National Equities Exchange and Quotations. The release of the rules marked a further step towards efforts to further develop China's OTC markets in a bid to supplement the Shanghai and Shenzhen stock exchanges.