The China Securities Regulatory Commission may introduce policies to encourage enterprises waiting for approval to launch initial public offerings to voluntarily switch to applying to be listed on the new third board, an over-the counter market for growth enterprises, reported China Business News on Monday.

This board, similar to the Over-the-Counter Bulletin Board in the United States, provides a financing platform for non-listed startup companies to raise funds.

There are some 800 enterprises waiting for IPO approvals from regulators. It has been more than two months since the regulators gave the latest approval to an IPO application in China.

If the policies are introduced, the 800 enterprises waiting for approval will have a new channel to raise fund in the short term, according to sources quoted by China Business News.

In the long term, new third board will become an important part of the multi-level capital market in China, the sources said.

A securities trader said traders suggested the move and the commission is drafting detailed policies. The regulators will encourage, rather than force, enterprises to apply to get listed on the new third board voluntarily.

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