Preparations for China's first growth enterprises board are close to completion, and a draft of its management regulations will be released as early as in April, according to the securities regulator.

Shang Fulin, chairman of the China Securities Regulatory Commission (CSRC) told the Securities Times yesterday that preparations for the growth enterprises board were "fairly sufficient" so far, and the market will be formally launched after all conditions are ripe.

He also said the CSRC will release the management regulations of the growth enterprises board to solicit public opinions as early as in April.

In his government report to the National People's Congress yesterday, Premier Wen Jiabao said China will establish a stock market for growth enterprises this year. But he did not specify the schedule.

According to Chen Dongzheng, chairman of the Shenzhen Stock Exchange and member of the National Committee of Chinese People's Political Consultative Conference (CPPCC), the first batch of growth enterprises, probably more than eight, will be listed after the detailed rules are promulgated.

Opinions are divided on which companies should be allowed to list in the growth enterprises board, he said.

Some argue the market should be open to all companies. However, Chen said the general standard should be to let investors share the profits and risks of the enterprises' growth, rather than the risk of starting a business. Therefore, the basic threshold is that no company in deficit should be allowed to enter the market.

As for venture capitalists and private equity investors, there will be a set period forbidding them from selling their shares after the company's IPO, according to Chen.

However, both officials didn't want to comment too much on the stamp tax issue which is raising concerns among investors. Shang said that the CSRC will work with relevant departments to study the stamp tax bills proposed by CPPCC members.

(Chinadaily.com.cn March 6, 2008)