China Prepares for a "Second Stock Market"

China has fully prepared for the establishment of a "second stock market", Zhou Xiaochuan, chairman of the China Securities Regulatory Commission (CSRC), said in Beijing April 17.

"When legal conditions are ripe and all the technical problems are solved, China will set up a second stock market as soon as possible," said Zhou, who is attending a three-day China Business Summit in Beijing.

China will unveil top eight major underwriters to improve their operation level. "However, selected underwriters are not entitled to any privileges," Zhou pointed out. China now has 23 securities companies which are qualified as major underwriters in China.

According to Zhou, CSRC passed a bill recently to encourage underwriters to handle commission and dealings via the Internet. On-line securities transactions only accounted for a meager one percent of the total stock dealings.

Meanwhile, China has improved its stock issuance systems to promote the healthy development of the securities market. For example, the issuance quota of shares and the administrative interference in issuance prices have been abolished, he said.

As for concerns about domestic Internet companies listing abroad, Zhou said that China encourages all kind of enterprises to accumulate fund through selling stocks. The CSRC will give more support to promote the Internet industry in China.

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