China's 'new third board' raises nearly 500b yuan since founding

BEIJING - China's National Equities Exchange and Quotations (NEEQ), also known as the "new third board", has raised 491.139 billion yuan ($69.35 billion) since its establishment in 2013.

A total of 6,388 firms listed on the board made 10,516 stocks issuances by the end of September, data from the NEEQ showed.

A number of small and medium-sized enterprises, as well as private enterprises, were financed via the new third board, according to the NEEQ. A total of 1,498 companies listed on the board received financing when operated on losses, and many firms obtained support from the capital market during the R&D stage.

The new third board, since its founding, has broadened the channels for the capital market in serving small- and medium-sized firms and the private sector, and has made positive contributions to supporting sci-tech innovation, said Xu Ming, general manager of NEEQ Co Ltd.

The board will speed up reform and optimize systems including listing access, issuance and financing, mergers and acquisitions, Xu said.

The NEEQ was launched in early 2013 to supplement the Shanghai and Shenzhen stock exchanges to serve small and medium-sized enterprises, which functions as an easier financing channel with low costs and simple listing procedures.