Famed as "the Father of the GEM Board", Cheng Siwei, Vice Chairman of the Standing Committee of the National People's Congress, has had a clear plan for China's SME board since 1998.
Under his plan, the SME board would be developed in accordance with three principles. First, do not lower the entry qualification while selecting hi-tech enterprises to be listed on the SSE; second, lower the threshold for more enterprises to enter; and third, establish a second-board market when conditions are met.
If this strategy comes to fruition, a multi-layered capital market similar to NASDAQ would be formed, including three markets: a first-board market (Main Board Market); a second-board market (Small Cap Market or Capital Market); and a third-board market (OTCBB).
(Xinhua Finance)
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