New Third Board eases capital woes

As a cornerstone in government efforts to build a multi-tier capital market, China's share transfer system for medium- and small-sized companies, also known as the New Third Board, is garnering much attention within the public. The State Council announced recently that China will step up efforts to deliver more financial support to smaller companies and businesses that have traditionally suffered from a lack of funding.

Experts believe that the New Third Board will offer a bridge between these companies and investors. By trading on this board, companies can not only raise money on the open market, the public information disclosures they make to investors will help them secure financing from banks as well.

Whether to list on the New Third Board is no longer a question for qualified small businesses. What these companies should do now is gather as much information as possible and engage a broker that can value their assets.

Looking ahead, the more companies that trade on the New Third Board, the higher the odds will be that China can produce homegrown innovators and world-leading companies.