China GEM to establish independent approval committee

Special Report:Global Financial Crisis

BEIJING, April 18 (Xinhua) -- China's securities regulator said Friday it
would establish an independent committee to approve listings for the growth
enterprise market (GEM) which would start operation as of May 1.

The committee will include 35 members. Five members will come from the
China Securities Regulatory Commission (CSRC), the regulator, and the remainders
from the accounting, law and other sectors, according to a CSRC circular.

"The GEM has differences from main boards such as company qualifications,
information disclosure and supervision. An independent committee is thus
necessary," the circular said.

Approval committee members selected for the GEM are not allowed to take any
positions from the main board approval committees so as to maintain
independence, according to the circular.

The CSRC also extended a probation period from two years for the main
bourses to three years for the GEM, given companies on the GEM usually had
"smaller scales and higher risks," the CSRC said.