Third national exchange proves popular

Managers of companies to be listed on the National Equities Exchange and Quotations record the achievement. The exchange is poised to become China's version of the Nasdaq. By year-end, more than 1,000 micro-sized, small and medium-sized companies will be listed. Provided to China Daily

National Equities Exchange and Quotations, China's third national equity exchange, has been popular among micro-sized, small and medium-sized companies. More than 1,000 will be listed on the board by the end of this year, said Yang Xiaojia, its chairman.

"The NEEQ is going to be China's Nasdaq market in the long term. We will continue to provide good services and innovations to attract companies and investors," said Yang.

Yang said since the third board opened its doors further, companies and investors have flocked there to seek cooperation.

The State Council released a statement in December that said all smaller domestic enterprises of a scale can be listed on the National Equities Exchange and Quotations.

Previously, only enterprises from four high-tech industrial parks in Beijing, Tianjin, Shanghai and Hubei's provincial capital Wuhan could apply to trade equities on the third board.

National Equities Exchange and Quotations started to receive listing applications from domestic companies on Dec 31.

There are currently 642 companies from 15 sectors listed on China's third national equity exchange. Their market value totaled 125.5 billion yuan ($20.6 billion), increasing 127 percent over that at the end of last year.

By Feb19, 22 share issues had been made this year. The financing amount was 467 million yuan, 46.7 percent of that across the full year of 2013.

The trading value at the board by Feb 19 from the start of this year totaled 264 million yuan, 32.4 percent of that in 2013.

"Companies listed at the third board are micro, small and medium ones with high potential," said Yang.

Of the 642 companies, about 59 percent have annual sales less than 50 million yuan. More than 80 percent are high-tech companies.

By the end of January this year, 12,347 investors had opened accounts with the third board, increasing 28.2 percent over that at the end of 2013.

The minimum funding amount for an individual investor with the board is 5 million yuan.

"The third board should play an important role in the development of China's multilevel capital market," said Yang.

Companies listed on the third board can apply for initial public offerings on the Shanghai and Shenzhen stock exchanges. Companies transferring shares on regional equity exchanges can apply for third-board listings.

One company on the third board, Beijing ECHO Technologies Co Ltd, was listed on the ChiNext market in Shenzhen Stock exchange this year.

Yang said they will pay attention to strengthening the market's system construction, perfecting the market supervision system, classifying listed companies and carrying out more innovative financing tools.

The third board is also the only over-the-counter market regulated by the China Securities Regulatory Commission.

Chen Yuemeng, chairman of ZSVC, a Hangzhou-based Chinese leading venture capital firm, said he is positively seeking opportunities with the third board because companies listed there have great potential and standard financial conditions.

Yi Jigang, president of the Beijing-based private-equity firm Orient Jiyi Investment, said the National Equities Exchange and Quotations statement is very positive for the Chinese capital market.

"The third board can help companies and investors find good cooperative partners and negotiate deals by themselves, which is very market-oriented," Yi said.