BEIJING, June 8 (Xinhua) -- China's National Equities Exchange and Quotations (NEEQ), also known as the "new third board", saw its qualified investors booming to more than 1 million by early June since its operator vowed to speed reform in late March, reported Chnfund.com, a fund industry portal Monday.
The number marked an increase of nearly 800,000 since late March, with the daily average growth staying above 10,000 in the past days from April.
Wu Jun, board chairman of Eternale Assets Management Co., Ltd. said the ballooning new qualified investors group for NEEQ was largely attributable to policy incentives and supports from related securities brokers and the favor would continue if market-oriented reform deepened in the future.
On June 3, China Securities Regulatory Commission (CSRC), the securities sector watchdog, promulgated rules allowing NEEQ-listed selected-layer enterprises with their stocks quoted for trading for at least one year to apply for trans-board listing on the Shanghai Stock Exchange sci-tech innovation board, China's Nasdaq-style tech board and the growth enterprises market (GEM) board on the Shenzhen Stock Exchange.
As Wang Zhanzheng, fund manager with Million Tons Capital held, China's recent reform measures were beating market expectations in terms of their speed of debut, degree of reform over the past policies, and implementation speed, therefore stock prices of NEEQ's selected-layer enterprises doubled and qualified online and offline investors on NEEQ surpassed market hopes.
Zhang Chi, board chairman of Xin Ding Capital echoed the view, saying that the first batch of NEEQ selected-layer enterprises may be able to quote their stocks for trading as early as in late July.
By far, NEEQ Market Making Index has rebounded about 58 percent since the historical low in January 2019, indicating a fundamental change in market investment sentiment, which trounced past expectations against the backdrop of the COVID-19 epidemic.
However, private equity fund managers still remained cautious in spite of materialization of the tran-board listing rules and progresses on launch of the selected-layer for enterprises on NEEQ.
In their opinion, quality of NEEQ-listed enterprises diversifies and investors need to guard against the potential risks currently. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
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