Requirements and procedures for listings on the new third board

The National Equities Exchange and Quotations (NEEQ), commonly known as the “new third board”, is the first corporate securities exchange approved by the State Council. It is operated by National Equities Exchange and Quotations Co (NEEQ Co).

Following the State Council’s publication of the Decision on the Issue Regarding NEEQ at the end of 2013, the China Securities Regulatory Commission (CSRC) modified the Measures Governing the Supervision of Non-listed Public Companies and related review guidelines, and NEEQ Co amended the Business Rules for NEEQ (Trial Implementation).

Based on the above decision, measures and business rules (collectively, the new rules), the new third board is positioned as a market platform for the public transfer and issue of shares – for the purpose of financing – and the conduct of M&As by small, medium and micro-sized innovative, entrepreneurial and growth unlisted enterprises, as well as for the delivery of information, technology and training services to market participants. As the new third board is expanding across China, this is very good news for most of these enterprises.