The National Equities Exchange and Quotations, China’s national over-the-counter share trading market, will soon adopt a new policy that will divide listed companies into two segments-as the securities regulator intends to streamline the regulation of the nascent and rapidly growing market. The regulator is likely to announce the policy by the end of this month, media reported on Tuesday [24 May 2016]. The rules will divide the NEEQ market, better known as the New Third Board, into two segments-the innovative market and the basic market…Full Article: ECNS.cn May 2016

Key Point

  • As of May 2016, The New Third Board (aka The NEEQ market) had 7,357 companies listed with a total market cap of CNY 2.9 trillion (US$440 billion). The exchange primarily serves to finance startups.

ChinaAg Comments

  • In late 2015 or early 2016, Tianjin Goubuli Food (baozi and other snack products) was reportedly listed on China’s New Third Board.
  • In August 2015, a Beijing steamed bun shop (Qing-Feng Steamed Dumpling Shop) announced plans to list the company on the New Third Board. In 2015, Qing-Feng operated 300 restaurants, including 262 located in and around Beijing. The company hopes to have 1,000 restaurants (80% franchised) by 2020. During the same month, Tiandi No 1, a subsidiary of Tiandi Yihao, was listed on the New Third Board. Tiandi primarily used the resulting funds (CNY 175 million or ~US$27.5 million) to develop its online-to-offline business (i.e. online to brick-and-mortar).
  • Established in 2012 and headquartered in Beijing, The New Third Board, also known as The National Equities Exchange and Quotations, is a pilot trading platform for unlisted small/medium-sized Chinese companies. As of mid-2015, approximately 2,000 small to medium sized companies were listed on the platform.

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