New Third Board forms stable base for multi-level capital market

On 14 December 2013, the State Council issued the Decision on Issues Relevant to the National Equities Exchange and Quotations [NEEQ], officially expanding the NEEQ’s so-called New Third Board to the entire country and essentially completing China’s multi-level capital market system. Further improvement of the various systems of the New Third Board will solidify its position in China’s market and allow it to function as the “pyramid base” in a multi-level capital market.

Turning to market principles

Pursuant to the 14 sets of business regulations issued on 8 February 2013, and amended on 30 December the same year, the features of the turn to market principles of the New Third Board after its expansion nationwide are manifest in the following ways:

In terms of listing, the New Third Board does not set a financial threshold while setting five basic access conditions. Enterprises that apply to list are not restricted by region, park, or whether they are wholly Chinese-invested or foreign-invested.