Buzz Archive:
China's New Growth Enterprise Market - A Welcome Alternative to Emerging Companies in China

by Michael Chin, David Huang, and Dane Johansen of Dorsey & Whitney, 5/5/2009

Perhaps it is just a part of the yin and yang cycle, but it has been said that we are living in a time when China produces and America consumes. While the People's Republic of China has the second largest economy in the world after that of the U. S., China's growth has suffered from the collapse in U. S. and global spending that began in 2008. Zhou Xiaochuan, Governor of the People's Bank of China, stated last month, "The Chinese economy has shown signs of recovery on the whole, but we are still in a tough fight with the global financial crisis."

Just this past week, some exciting changes began in China. For the first time in 60 years, Chinese institutional investors will now be allowed to invest in money markets in Taiwan. Also, China just established a stock market for growth enterprises, a NASDAQ-like growth enterprise board to help small start-ups, especially high-growth and high-tech firms, raise funds.

In this week's Buzz article, "China's New Growth Enterprise Market - A Welcome Alternative to Emerging Companies in China," Michael Chin, David Huang and Dane Johansen of Dorsey & Whitney LLP discuss this new market and its main listing requirements.