Beijing has seen the official launch of its new stock exchange designed to service the financing needs of innovative small businesses in China.
The Beijing Stock Exchange held the ceremony for its official opening and sign unveiling on the afternoon of 15 November.
Xu Ming (徐明), chairmen of the Beijing Stock Exchange, said at its opening ceremony that its goal is the “creation of a main front to service innovative small and medium-sized enterprises,” as well as the “expansion of market scope, excavation of market depth, introduction of diversified funds, and development of an excellent operating environment for SME’s.”
President Xi Jinping unveiled plans for the launch of the Exchange at the start of September, with the goal of driving the growth of innovative small enterprises.
The Chinese president pointed in particular to the role played by the New Third Board market (新三板) – China’s over-the-counter (OTC) market first launched in 2006, in providing preliminary support to the creation of a bourse in Beijing.
“Deepening reform of the New Third Board Market and establishing a Beijing Stock Exchange are an intrinsic necessity for capital markets better supporting the development and strengthening of small and medium-sized enterprises,” said Xi.
“[This] is the necessary requirement for implementing a national innovation-driven development strategy, and a key move for comprehensively deepening capital market reforms under new conditions.
“The China Securities Regulatory Commission will deepen reform of the New Third Board market, and make the New Third Board the foundations for the creation of a Beijing Stock Exchange, further raising the ability to service small and medium-sized businesses.”
According to state-owned media reports from the end of October a total of 68 companies from the New Third Board will make their debut as listed companies on the Beijing Stock Exchange once trading officially commences.