SHANGHAI, March 10 (Reuters) - China is considering adjusting the investment threshold for Shanghai’s tech-focused STAR Market to boost liquidity and improve rules for the registration system.
“We suggest adjusting the investment threshold as the liquidity conditions for the STAR Board are not that ideal,” Fan Yun, a deputy to China’s National People’s Congress, was quoted as saying in a Shanghai Observer report on Tuesday.
Fan said the lack of liquidity, low trading volume and big market fluctuations made it hard for the board to attract good companies and capital.
Fan said she also hoped the science & tech nature evaluation guidelines for the board could be improved and published soon.
A source familiar with the matter at the China Securities Regulatory Commission (CSRC) confirmed the report to Reuters.
The CSRC has also been considering improving the rules for the registration system as it has found too many companies withdrawing their plans to list during an on-site investigation of STAR Market and ChiNext IPO applicants in recent months, according to the source.
As of Tuesday, there were a total of 236 companies listed on Shanghai’s STAR Market, with a combined market value of 3.1 trillion yuan ($476.4 billion).
($1 = 6.5078 Chinese yuan)
(Reporting by Luoyan Liu, Zoey Zhang and Andrew Galbraith; Editing by Jacqueline Wong)