A new stock exchange will be launched in China later this year that should provide a boost to the country's employment.

The Chinese government announced on Tuesday (March 31st) that the Growth Enterprise Board will be launched at the start of May.

Explaining how it will work, the China Securities Regulatory Commission (CSRC) said that small firms which have had net profits of five million yuan for one year with sales of at least 50 million yuan, or net profits of ten million yuan will be accepted.

These requirements are lower than the current limits as set out for the exchanges in Shenzhen and Shanghai.

A spokesman for the CSRC said in a statement that this move should help to encourage investment in Chinese firms and promote employment opportunities.

He commented: "The move will play an important role to attract non-government investment, help upgrade industrial structures and promote employment."

Based in Beijing, the CSRC is the main securities regulator of the People's Republic of China.© Adfero Ltd