The New Third Board was established to facilitate the financing of small and medium-sized enterprises.
However, trading was flat in 2015. More than half of the companies listed on the board have zero exchange for the whole year of 2015. That's because of high market entry requirements for investors. But the situation could improve in 2016.
"Institutional investors are expected to enter the market in the second half of this year with the introduction of the stratification system," said Cheng Xiaoming, dean of Qichao New Third Board Academy.
"The market will turn relatively warmer. Besides, the minimum investment of 5 million yuan may be lowered for individual investors."
The stratification system was introduced last year to separate growing companies from those with flat or negative performance. About 450 listed in the board are qualified as innovation companies which implies high growth expectations.
This arrangement will facilitate investors in selecting investment targets. In the meanwhile, an increase of market makers in the board will provide more liquidity.
