China’s nascent over-the-counter equities trading platform, also known as the New Third Board, had been a major beneficiary of Beijing’s ban of IPOs on the main board in Shanghai and Shenzhen since early July. However, the IPO resumption in early November puts a question mark over the New Third Board’s future success.
The Beijing-based new board had offered an alternative to Chinese small and medium-cap firms in the wake of the summer’s Chinese market rout which wiped about $3 billion off the total value of the market.
Chinese firms raised Rmb43 billion ($6.8 billion) on the new board between July and September, up 34% from the amount raised over the first half of the year.
New Third Board Sets Sail
The supertanker main board in Shanghai still dwarfs the smaller New Third Board by market value.