THE scanty three-year strategic plan announced by the Hong Kong stock exchange has disappointed market practitioners because of its lack of foresight but has won some sympathetic ears.
Merchant bankers were delighted to see the exchange revisiting the possibility of having a second-tier market and introducing market-making system to the less liquid stocks.
These two ideas were turned down in the consultation paper issued by the exchange in March 1994.
Whatever its proper name may be, a second-tier market, second board, venture capital board or growth company board, it would provide a fund-raising channel for small companies with high growth potential.
The exchange plans to collect more feedback before a formal consultation is conducted.
Bankers were wary if such a board should be run by the same stock exchange.
'Overseas experience showed that a second board is better run by a different body separate from the main board,' one said.
