China gives VC companies more freedom
Xinhua 2009-10-14
China's securities watchdog has said venture capital (VC) companies under partnership could be allowed to become shareholders of listed companies, China Daily reported Wednesday.
It is a long-awaited move to encourage VCs to bolster domestic companies' listings on the mainland, the newspaper said.
The China Securities Regulatory Commission (CSRC) said it would modify the regulations on measures for the administration of securities registration and clearing, which would enlarge the scope for investors. Under the new rule, companies under partnership could open trading accounts to sell shares on the openmarket.
The new measures could lift the legal barriers for VC firms under partnership to invest in companies that are to be listed. It was expected to boost the healthy development of private equity (PE) firms as well as the NASDAQ-style Growth Enterprise Board (GEB), the newspaper said, citing an official with the CSRC.
Previously, only individuals and specifically qualified companies could open trading accounts.
Latest figures show that 28 companies have been given the greenlight to list on the GEB. Among them, 23 are backed by VC or PE companies.
