China's NASDAQ - Will it finally come to life ?

For almost two years rumors in financial circles have tauted the possibility of a NASDAQ-like stock market based in Shenzhen for high growth small and medium sized enterprises.

It now seems that according to China Daily the State Council has issued an opinion that the new market should come to life as soon as possible.

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From China Daily:

Qi Bin, director of the research center of the China Securities Regulatory Commission, highlighted the importance of reform amid the financial crisis, especially "capital market reform". He said, the Growth Enterprise Board should be introduced as soon as possible to promote interconnection between high-innovative enterprises and the capital market.

The cabinet also stated it will support enterprises to conduct mergers and acquisitions through the capital market to enhance industrial upgrades and integration.

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If this new market comes to life investors in China will have a new exit path for their investments. My hope is that it can be more of a true market than the current exchanges and can grow as a true market rather than a "regulated" market.