China is set to expand its over-the-counter (OTC) market, or the so-called New Third Board, soon, and a plan has been submitted to regulators for approval, the China Securities Journal reported Wednesday, citing an unnamed source. Under the expansion plan, qualified firms nationwide could be incorporated into the scheme. At present, only companies in four high-tech parks are allowed to participate in the pilot program. The new third board allows investors to trade equities in non-public firms, mostly high-tech startups, making it an important platform for direct financing in addition to the existing main board, the Growth Enterprise Market and the Small and Medium Scale Enterprises Board.
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