Govt to reform NEEQ to promote growth of SMEs 
2019-10-28
China will reform its National Equities Exchange and Quotations board, or the new third board, to further promote the growth of small and medium-sized enterprises.
The country has outlined a series of reform measures to better orient the NEEQ to the needs and features of SMEs and support high-quality growth of the real economy, the China Securities Regulatory Commission said.
NEEQ-listed companies will be stratified to sift out a group of best-performing ones that are treated with a differentiated system regarding trading, investors’ eligibility, information disclosure and oversight.
The reform will enable companies that have stayed in the best-performing group for a set period to be listed on the stock exchanges, as long as they meet public offering requirements.
A diversified shares issuance system will also be introduced to help improve financing efficiency and lower costs for companies.
Oversight and management will be tightened to ensure the quality of listed companies and upgrade the market exit system to protect investors.
Launched in 2013, the NEEQ supplements the Shanghai and Shenzhen boards, offering SMEs a financing channel with low costs and simple listing procedures. By end-September, a total of 13,219 firms had been listed on the board, 94 percent SMEs.  
