Asian Tech Press (Sep 3) -- Chinese President Xi Jinping announced Thursday that China will set up a new stock exchange in Beijing to serve small and medium-sized enterprises (SMEs).
Xi delivered a video message at the 2021 China International Fair for Trade in Services (CIFTIS) on Sept. 2 and said, "We will continue to support the innovative development of small and medium-sized enterprises (SMEs), deepen the reform of the New Third Board Market, and establish the Beijing Stock Exchange to create a main position to serve innovative SMEs."
China intends to set up a new stock exchange to lure back overseas-listed Chinese companies and attract foreign companies, including tech firm Apple Inc. and electric vehicle giant Tesla Inc., to list on the stock market, Reuters reported in late March, raising the global profile of its stock markets.
And Reuters reported that one option being discussed is upgrading an existing listing platform, such as Beijing's New Third Board Market.
For now, it appears that China has opted to upgrade the smaller bourse in Beijing to a stock exchange, naming it the Beijing Stock Exchange.
The China Securities Regulatory Commission (CRSC) responded on its official website on the evening of September 2, saying that the establishment of the Beijing Stock Exchange is an inherent need for the capital market to better support the development and growth of SMEs.
The SFC said it will further deepen the reform of the New Third Board Market and set up the Beijing Stock Exchange based on the existing Selective Tier of the New Third Board to further enhance its ability to serve SMEs and create a main position to serve innovative SMEs.
China's top securities regulator also indicated that the Beijing Stock Exchange is committed to staggered development and interconnection with the Shanghai and Shenzhen stock exchanges and regional equity markets, and to playing a good role in the transfer of listing.
The New Third Board Market, officially known as the National Equities Exchange and Quotations (NEEQ), was inaugurated in China in early 2013.
In December 2013, China's State Council issued a document clarifying the status of the NEEQ as the third national securities trading venue, mainly serving innovative, entrepreneurial and growing SMEs.
According to statistics, since its establishment, the NEEQ has served nearly 10,000 listed companies, of which 93% are private enterprises and 94% are SMEs. And nearly 7,000 companies have achieved financing, with a total financing amount of over 500 billion yuan.
At present, the New Third Board Market has become one of the most important platforms for the capital market to serve SMEs in China.
