China set to announce second board rules

China is expected to release finalized rules governing the second board on the Shenzhen Stock Exchange this week, paving the way for a Nasdaq-style stock market, the South China Morning Post reported. The China Securities Regulatory Commission (CSRC) is likely to start reviewing listing applications from dozens of small firms in the next one to two months. The CSRC will also set up a review committee for applications from start-up firms. Companies reporting combined net profits of US$1.4 million for the past two financial years will be allowed to apply for a listing on the second board. Analysts said the move suggests new efforts by the CSRC to shift investor attention from the declining stock market.