China to Launch Beijing Stock Exchange for SMEs

stock
(Source: Sina)

Chinese President Xi Jinping announced on Thursday in his speech via a video at the 2021 China International Fair for Trade in Services that a new stock exchange will be set up in Beijing to support the innovation and development of small and medium-sized enterprises (SMEs), deepening the reform of the National Equities Exchange and Quotations (NEEQ, known as the New Third Board).

The Beijing Stock Exchange will adhere to serving innovative SMEs, promote their development, and enhance the inclusiveness and accuracy of the exchange system.

The CSRC, The country’s top securities regulator, said that it will establish a capital market system tailored for innovative SMEs in the new Beijing Stock Exchange, aiming at cultivating a group of SMEs with strong innovation abilities and focusing on niche sectors.

“It will be a significant push for improving capital market functions, promoting the integration of technology and capital, and supporting the innovative development of SMEs, “the CSRC said in a statement on Thursday.

Li Jianjun, deputy head of the research institute of Shanghai United Assets And Equity Exchange, said the new exchange is expected to not only provide more financing opportunities to Chinese SMEs but also help to integrate different parts of China’s capital markets.

SEE ALSO: Shanghai Stock Exchange’s IPO Volume Ranks No.1 Worldwide: EY Report

After the establishment of the Beijing Stock Exchange, the Chinese government is possible to arrange and improve various related basic systems in the future, such as various arrangements in issuance, trading and supervision.

The Beijing Stock Exchange will be the third national stock exchange in the Chinese Mainland’s capital market after the Shanghai and Shenzhen exchanges. It has been over 30 years since the Shanghai and Shenzhen exchanges were established

The NEEQ, also known as New Third Board, debuted in 2013, and is an equity trading system tailored for small and medium-sized enterprises.