China expands OTC exchanges for SMEs

China Securities Regulatory Commission is set to expand access to over-the-counter (OTC) exchange markets for small and medium enterprises while eliminating approval procedures for applicant companies that have 200 or fewer shareholders, Reuters reported, citing an announcement made by China’s State Council on Saturday. The announcement followed reports in state media on Friday quoting unnamed sources saying the reform could happen before the end of the year. The announcement also said institutional investors will be encouraged to participate, in particular brokerages, insurance companies, investment funds and foreign funds.