China Unveils Roadmap for launch of GEM Board

The China Securities Regulatory Commission, the nation's securities watchdog, has unveiled a roadmap plan for the launch of the Growth Enterprise Market, or GEM.

GEM is a Nasdaq-style stock market designed to nurture cash-hungry innovation-driven startup firms in China.

Ouyang Zehua is vice director of the watchdog's market supervision department.

"First we should introduce the rules for the system and conduct comprehensive training for intermediary agencies. Then we can set the time to receive applications to list shares. It all depends on the preparation of firms and sponsors."

Late last month, the securities regulator unveiled listing rules for initial public offerings on the GEM, saying the rules will take effect on May 1st.

The newly-released rules require applicants to have a minimum 10 million yuan, or nearly 1.5 million U.S. dollars worth of accumulated net profit in the two years prior to a listing.

This compares with at least 30 million yuan in the previous three years required for application to the main boards.