The National Equities Exchange and Quotations (NEEQ, known as the New Third Board), established upon the approval of the State Council in accordance with the Securities Law, is the third national equity trading venue after Shanghai Stock Exchange and Shenzhen Stock Exchange. It is the first equity trading venue operated by a company. The National Equities Exchange and Quotations Corporation Limited (NEEQ Co. Ltd.) was registered with the State Administration for Industry & Commerce (SAIC) on September 20, 2012 with registered capital of RMB 3 billion, and was inaugurated on January 16, 2013.
The NEEQ Co. Ltd. engages in: offering technology systems and infrastructures for securities trading; formulating and revising business rules of NEEQ; receiving and reviewing the applications of shares listing and other relevant businesses, and arranging shares listing for qualified companies; organizing and supervising securities trading and relevant activities; regulating listed companies and other information disclosure obligors; supervising chief agency brokers and other market participants; managing and disclosing information about NEEQ; and other functions approved by the China Securities Regulatory Commission (CSRC).
Under the leadership of the company’s Communist Party Committee, the corporate governance structure comprises the general assembly of shareholders, the board of directors, the board of supervisors and the executive management group.
On December 13, 2013, the State Council issued the Decisions on Issues Regarding the NEEQ (hereinafter the Decisions), which confirms the NEEQ as a national public securities market. As prescribed in the Decisions, the NEEQ is designed for innovative, start-up, and high-growth micro, small and medium-sized enterprises. Qualified joint-stock companies in China can apply through their chief agency brokers for listing and transferring shares publicly on the NEEQ, to access equity/debt-financing, and asset restructuring, among others.
By the end of 2018, 10,691 companies had been listed on the NEEQ, including 914 on the innovation tier and 9,777 on the base tier, with total market capitalization of RMB 3.45 trillion. Listed companies had made 1,402 issues, raising RMB 60.44 billion.
The NEEQ Co. Ltd., under the supervision of the CSRC, will pursue the vision of innovative, coordinated, green and open development that is shared by everyone, and implement the strategic task of deepening NEEQ reforms prescribed in the Outline of the 13th Five-Year Plan for National Economic and Social Development by deepening market classification, bettering market financing systems and improving market liquidity, so that the it could better serve micro, small and medium-sized enterprises, especially innovative, start-up, and high-growth companies, support supply-side structural reform, promote innovation and entrepreneurship, structure optimization, and asset revitalization, and energize new drivers of economic growth.