A THIRD stock exchange in China is ''inappropriate'' because mainland exchanges are still experimental and a guaranteed free flow of market information nationwide has technical limitations.
China Securities Regulatory Commission (CSRC) general secretary Zhu Li yesterday said this as he ruled out the suggestion of a third mainland exchange.
In recent months there has been a concerted battle between cities such as Tianjin and Wuhan for the honour of becoming the home of the third exchange.
In Beijing last week, Professor Li Yining - head of the drafting group on China's securities law - said there was no mention of a third national stock exchange in the new law.
However, he said regional exchanges, in concert with over-the-counter trade, would be suggested in the nation's maiden securities law which is due to be released in March next year.
Addressing a seminar in Hong Kong yesterday, Mr Zhu said the exchanges in Shanghai and Shenzhen were still only at pilot stage and it would be appropriate to consider a third market only when regulations for the existing two had been perfected.
He added that a guaranteed free flow of market information from the two stock exchanges across the country would have to be achieved before a third one was introduced.
