OTC market attractive for small, medium firms

Chinese securities companies are busy preparing applications for small and medium-sized unlisted firms that want to trade on the over-the-counter market.

Faced with the lackluster performance of the main board, the companies are hoping to get a piece of the OTC market.

Market watchers expect that an initial list with the names of the companies trading on the OTC market may be disclosed in September, as underwriters can submit the applications to the market supervisors in two weeks.

Meanwhile, public comments are being requested on draft regulations for unlisted companies prepared by the China Securities Regulatory Commission. The regulations are expected to be officially released by the end of the year.

Previously, the securities regulator confirmed that the State Council had approved a proposal to expand the pilot programs of the new board in provinces and cities including Shanghai and Tianjin, and Wuhan in Hubei province.