Current State of and Challenges Facing China's OTC (Third Board) Market

13 Pages Posted: 25 Nov 2009

See all articles by Takeshi Jingu

Takeshi Jingu

Nomura Institute of Capital Markets Research

Date Written: November 19, 2009

Abstract

The "Third Board," China's OTC stock market, is still small and illiquid. However, October 2009 sees the establishment of a "Second Board" (or "Growth Enterprise Board") that will fill the gap between the Main Board and the OTC market. We expect the role of the Third Board to become clearer and increasingly important as China seeks to create the "multi-tier capital market" envisaged by the China Securities Regulatory Commission. This paper describes how the OTC market has developed, how it operates, and the rules governing it before going on to consider how it is likely to develop in the years to come.

Keywords: OTC(Over the counter) stock market, SME finance, growth enterprise, China

JEL Classification: G24

Suggested Citation

Jingu, Takeshi, Current State of and Challenges Facing China's OTC (Third Board) Market (November 19, 2009). Nomura Journal of Capital Markets, Vol. 1, No. 3, 2009, Available at SSRN: https://ssrn.com/abstract=1512405

Takeshi Jingu (Contact Author)

Nomura Institute of Capital Markets Research ( email )

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2-2-2, Otemachi, Chiyoda-ku
Tokyo, 100-8130
Japan

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