China's planned Nasdaq-like growth board is ready to assist the development of start-up firms with high potential as it supports the country's strategy of encouraging self-innovation, senior officials said.

Cheng Siwei, vice chairman of the Standing Committee of the National People's Congress, said during a forum on Sunday in Shenzhen, Guangdong Province, that the conditions were right to launch the growth board and "it is better early than late for its establishment."

Shang Fulin, chairman of the China Securities Regulatory Commission, said it was a high priority for China to quickly build the new board to create a multi-layer capital market.

Shang reiterated three key points that are important for the planned growth board. He said it must smooth the transition of China's economic growth model from labor- and resource-intensive to technology- and innovation-based industries.

The growth board must also coordinate smoothly the development of urban and rural areas and between different regions to contribute to China's geographically balanced economic growth, he continued.

Shang said it must ensure sustainable development and focus on energy conservation and environment protection.

He said there is an urgent need to set up the growth board following the emergence of enterprises in new technology, new material and new energy as well as in the modern service industry and modern agriculture.

In October, the Shenzhen Stock Exchange asked brokers to identify companies which planned to sell shares on the planned growth board and to offer suggestions on building an effective market as a platform to raise funds for small- and medium-sized enterprises.

Companies are now required to be profitable for three consecutive years and generate 30 million yuan (US$4 million) in collective earnings during the period before they could list their shares. Cumulative revenue in the three-year period must reach 300 million yuan.

The Shenzhen bourse established the Small- and Medium-sized Enterprise Board in 2004 but didn't lower the listing criteria.

The three-year earnings requirement may be cut to 10 million yuan for the planned growth board, according to earlier reports.

(Shanghai Daily December 4, 2007)