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Investors await second board
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Yang Yunfei
CHINA should launch the long-awaited second board stock market soon to take advantage of the bursting of the high-technology bubble, said a group of venture capitalists in Shenzhen on Wednesday.
Speaking at a seminar sponsored by the Shenzhen Stock Exchange, Mao Daolin, chief operational officer of leading Chinese portal Sina.com, said that it was high time to set up the second board because investors would not expect much from shares on the Nasdaq-style stock exchange, which would put the share prices of listed companies in a sensible range.
"It will pay off in the future if the prices stay relatively low," said Mao, who once worked for famous US venture capital company Walden Group.
Wang Zhijian, vice-president of the US venture capital company H&Q, said that the high-tech boards in South Korea, Japan and Hong Kong suffered heavily because shares on these boards were overwhelmingly overpriced. He noted that many investors have remained cool-headed following the bursting of the high-technology bubble, which might do good to the launch of the second board.
Analysts say that second board would help high-tech and private firms raise much-needed capital as overseas venture capital has dried up following the global collapse in technology stocks.
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