China is mulling an expansion of a pilot program which permits small businesses that do not meet the criteria to be listed on the country’s stock exchanges to sell shares on an over-the-counter market, The Wall Street Journal reported, citing a source who asked not to be identified. The expansion would cover high-tech companies in specialized economic zones in Shanghai and Wuhan, said the unnamed source. The program, which is run through the Shenzhen Stock Exchange and could eventually cover the entire country, provides greater access to capital for small businesses, many of which struggle to secure loans from China’s largely state-run banks. The OTC program was launched in 2006, but until now has only been open to companies in the Zhongguancun Science and Technology Zone in Beijing.
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