China will launch a long-awaited growth enterprise board on May 1st. It will serve as a new direct financing platform for innovative companies. China's securities regulator released new guidelines on Tuesday.

The regulations state that companies seeking a listing on the new Nasdaq-like second board should have net assets of at least 20 million yuan. They also note that companies applying for a listing be open for business for more than three years.

The China Securities Regulatory Commission also requires that the issuer has remained profitable in the two most recent consecutive years prior to its application. The prospective issuer must also have combined profits of at least 10 million yuan. Or report profits of at least 5 million yuan for the most recent year on revenues of at least 50 million yuan.

The company must also have an annual revenue growth of at least 30 percent in the recent two years. The guidelines are set to go into effect on May 1st.

(CCTV March 31, 2009)