OCT 23rd China will launch a new Enterprise Board to compete with America.The new index will allow smaller companies to compete with larger corporations for precious financial resources.
The index will begin trading with 28 companies, and will be located in Shenzhen, the southern financial center near Hong Kong that is the site of the smaller of China's two stock exchanges.
Although the size of the share offerings is dwarfed by those of much bigger companies on the main boards in Shenzhen and Shanghai, the exchange offers Chinese punters a welcome new investment option. Foreign investors are still largely excluded from trading in Chinese currency-denominated shares.
How this affect the demand for Chinese penny stocks corporations to list on the smaller American OTCBB, or Pink Sheets? Perhaps we will see American corporations seeking listing on the new Chinese Enterprise Board!