The Qianhai Equity Exchange, a regional over-the-counter market, will establish a new market-oriented financing platform separate from stock exchanges and commercial banks, said Hu Jizhi, chairman of the exchange, in a recent interview with China Securities Journal.

Hu predicted that the cost for small- and medium-sized companies seeking financing in Qianhai will be only one-tenth of that in the floor market.

He told the newspaper that he expects to see 3,000 companies listed in Qianhai in three years and 10,000 in six years.

In the first six months of the year, Qianhai will be mainly helping companies to seek financing via the issuance of private debt and other fixed-income products. It will try to come out with equity-financing services in the second half of the year.

To promote the development of the regional equity market, Qianhai plans to apply for financing from the Shenzhen local government to establish a Qianhai Equity Exchange SME development fund, with an initial amount of 50 million yuan ($6.44 million).

The money will be used to improve the competitiveness and management abilities of listed companies.

shijing@chinadaily.com.cn