CSRC to deepen study issue of lowering threshold in OTC stock mkt
BEIJING, Nov. 21 (Xinhua) -- China's National Equities Exchange and Quotations, also known as the new third board or the Over-The-Counter (OTC) stock market will deepen study on the issue of lowering threshold for investors based on the actual situation, according to Zhang Xiaojun, spokesman of the China Securities Regulatory Commission (CSRC) on Friday.
Given the risk characteristics of small- and medium-sized enterprises listed on the OTC stock market, some strict rules were set up for individual investors who are required to own at least 5 million yuan worth of asset size. The current regulations have controlled the market risk well, prevented risk spillovers and offered guarantees for smooth start of the pilot business.
However, since the start of this year, with the expanding market size, individual investors have showed growing willingness to participate in the market. Therefore, the National Equities Exchange and Quotations will study the issue of reducing threshold for investors based on the actual situation, said Zhang. (Edited by Hu Pingchao, firstname.lastname@example.org)