Bourse for overseas Chinese firms opens

The Overseas Chinese Board, an equity trading center dealing in stocks of local companies promoted by overseas Chinese, was launched in Shantou, Guangdong province, on Tuesday.

Part of a pilot economic and cultural zone for overseas Chinese, the bourse will seek to boost financial services for local small and medium-sized businesses, particularly those engaged in innovation.

According to Chen Maohui, Party chief of Shantou, the new stock market will target local businesses promoted by overseas Chinese. They could list on the bourse after meeting the exchange's shareholding pattern requirements.

Shantou is eyeing investments from overseas Chinese in the pilot economic and cultural zone.

"The trading center will help expand financial services for local businesses and deepen cooperation for international investments in the pilot zone," said Chen at the bourse's launch ceremony.

As for the zone's development plan, which was approved by the State Council in September last year, cross-border financial services will receive priority.

So far, more than 1,300 companies have been incorporated in the zone. According to Chen, most of them were promoted by overseas Chinese.

Of these, 218 companies have listed on the Overseas Chinese Board. Their initial market capitalization reached 5.1 billion yuan ($800.6 million), according to official statistics.

According to Chen, 11 billion yuan has been already invested in a new town in the city's eastern coastal area within the zone. Much of that investment went into development of infrastructure and commercial offices.

"We will diversify financial products and introduce more innovative measures to facilitate development of thousands of businesses promoted by overseas Chinese in the zone and in the eastern area of Guangdong," Chen said.

Already, a group of financial organizations, including some booming Internet financing companies, have signed agreements to cooperate with the Overseas Chinese Board.

Yong Heming, president of the Guangdong Finance Institute, said the Overseas Chinese Board would help integrate financial resources in Shantou, one of the special economic zones approved in the early 1980s.

"After 30 years of rapid development, local businesses, most of which are engaged in traditional manufacturing, have also developed a strong demand for financial services to help expand themselves," said Yong.