By Hao Zhou (chinadaily.com.cn)
Updated: 2007-07-30 14:20

The plan to establish the growth enterprises market (GEM) at the Shenzhen Stock Exchange has been submitted to the State Council, and the GEM will likely open in Shenzhen next year, according to Wang Shouren, secretary-general of the Shenzhen Venture Capital Association.

After the GEM is approved, the detailed listing qualifications, transaction rules as well as information disclosure regulations, will be successively announced, said Wang at 2007 International M&A and Private Equity Summit (Shanghai).

Related readings:  Growth enterprises market is considered

Although the specific timing for the launch of the secondary board hasn't been confirmed, there are over 1,000 enterprises preparing to list there.

Currently, construction on a multi-level capital market is accelerating. Wang mentioned that Shenzhen will focus on the small and medium enterprise board as well as the GEM, while the main board will remain in Shanghai.

Wang also said the China Securities Regulatory Commission is working on the over-the-counter trade rules.

China has two main stock exchanges in Shanghai and Shenzhen. It opened a secondary board in Shenzhen especially for small and medium-sized firms in 2004.