Invest Positively

Chinese securities regulators are preparing some of the world’s strictest regulations on a trading practice at the heart of the global debate over high-speed computerised markets.

When stock exchanges introduce a second board, it is often targeted at attracting companies with nil or limited profit records but with growth potential. The acronyms used reflect the exchanges’ optimism or aspirations about these companies, such as Catalist in Singapore, AIM (Alternative Investment Market) in the United Kingdom, and GEM (Growth Enterprise Market) in Hong Kong. Unfortunately, companies aiming to be catalysed into gems through access to public capital may not fulfil their promise.