China is preparing to establish regional over-the-counter OTC equity markets as part of its latest effort to provide access to credit for the country’s cash-strapped SMEs and to encourage private participation in the financial system.
The new fund-raising channel, together with other measures such as broadening the scope for cross-border renminbi investment, signals that a new round of financial reform in China is taking shape, according to Jing Ulrich, managing director of global markets, China, at J.P. Morgan.
The OTC market, known in China as the “new third board”, will focus on high-tech companies and will trade through a network of regional dealers that negotiate...
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