Policy Transfer: The Case of Founding the Growth Enterprise Board in China’s Security Market

Abstract

ABSTRACT This article explores the initiation process of China’s Growth Enterprise Board in the security market and focuses on the policy transfer activities developed by the Chinese based on the financial markets of the United States and United Kingdom. It presents a case study of China’s Growth Enterprise Board, which has served as a new system for financing high-tech and innovative enterprises and upgrading the performance of the security market in China. The study expands the policy transfer framework as a ‘short-cut’ approach and suggests that policy transfer is a rational tool for creating policy instruments in a developing country. Additionally, the article indicates that policy agencies, such as China’s security market, NASDAQ, and AIM, have become key sources for internationalizing China’s security market. Therefore, this article contributes to the literature on policy transfer, which has previously paid little attention to China’s security market in the past.