Independent Committee On Listings For GEM

Source: Xinhua  |   2009-4-20  |     NEWSPAPER EDITION

CHINA'S securities regulator has said it would establish an independent committee to approve listings for the Growth Enterprise Market.

The committee will comprise 35 members. Five members will come from the China Securities Regulatory Commission and the rest will be from the accounting, law and other sectors.

"The GEM has differences from main boards such as company qualifications, information disclosure and supervision. An independent committee is thus necessary," the regulator said last Friday.

Members of the approval committee selected for the GEM are not allowed to take any positions on the main board approval committees to maintain independence. It also extended a probation period from two years for the main bourse to three years for the GEM, given firms on the GEM usually had "higher risks," the commission said.