China to allow firms to publicly issue shares on New Third Board exchange

China's securities regulator on Friday took steps to revive the country's New Third Board exchange, unveiling plans to allow companies to raise money more easily, and broaden its investor base. Qualified companies listed on the Beijing-based start-up board will be allowed to issue shares publicly for the first time, the regulator said in a statement. Currently, companies listed there can only raise money through private placement.

In addition, mutual funds and other long-term investors will be allowed to participate in the New Third Board, potentially boosting liquidity. The move is China's latest measure to reform its capital markets, as Beijing seeks to channel more funds into the real economy as the Sino-US trade war bites. After initial explosive growth following its inception in 2013, the New Third Board, officially called the National Equities Exchange and Quotations (NEEQ), has been struggling in recent years.