Center

Tianjin exchange on the cards

By Li Fangchao (China Daily)
Updated: 2007-03-10 09:08

In general, securities are traded over-the-counter because the companies are not big enough to meet the requirements for exchange listing.

Chinese mainland has two main boards inShanghaiand Shenzhen, a small and medium-sized enterprise board in Shenzhen, as well as an OTC trading system forBeijing-based technology firms.

Pi said the new OTC bourse would be supplementary to the current capital market in China.

"It is a very important attempt to diversify property rights and capital," he said.

It will also give more attention to companies that focus on scientific innovation.

Though the city is actively pushing forward financial reforms like the OTC market and the newly founded Bohai Industrial Fund, the BNA was originally intended as a manufacturing and international logistics hub.

Analysts said Tianjin was likely to be edged out by neighboring Beijing, home to the headquarters of the country's major banks, in any bid to become a financial center.

"Tianjin never said it intended to become a financial hub, but that it would establish a complete financial services and innovation system," Pi said.