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Beijing’s new stock exchange starts trading

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By Zhao Zhanhui, People’s Daily

The highly-anticipated Beijing Stock Exchange (BSE) officially started trading at 9:30 a.m. on Nov. 15. The first batch of 81 companies made their debut on the new bourse, including 10 newly-listed companies and 71 companies transferred from the selected layer of China’s National Equities Exchange and Quotations (NEEQ), also known as the New Third Board.

The 81 companies registered a combined trading volume of about 9.58 billion yuan ($1.5 billion) on the first day of trading The share prices of the 10 newly-listed companies surged 199.8 percent on average and those of the rest 71 seeing stable overall performance.

The basic layer and innovation layer of the New Third Board were also boosted by the new bourse in Beijing, with their trading volumes on Monday rising 40.37 percent and 34.07 percent, respectively, from the previous trading day.

Since Chinese President Xi Jinping announced that the country would set up a stock exchange in Beijing at the Global Trade in Services Summit of the 2021 China International Fair for Trade in Services (CIFTIS) on Sept. 2, China’s securities regulator spared no effort to push ahead with the implementation of reforms and completed the release of relevant systems, the opening of investor accounts, and the preparation of technology system and enterprises within about two months, eventually ensuring the smooth opening of the new bourse.

Of the first batch of enterprises, 87 percent are from advanced manufacturing, modern service, high-tech service, and strategic emerging industries, and 17 are “little giant enterprises” with specialized, sophisticated techniques and unique, novel products. All of them enjoy sound business operations and relatively strong growth prospects.

These companies cover 25 major industries of the national economy, and most are in the vanguard of industry segments. Their average research and development (R&D) intensity reaches 4.2 percent and R&D expenditure 25.36 million yuan, fully demonstrating the role of the BSE as a platform serving innovation-oriented small and medium-sized enterprises (SMEs).

China is home to more than 40 million business entities, including more than 225,000 high- and new-tech enterprises, said an official with the China Securities Regulatory Commission (CSRC), noting that these companies are in different stages of development and have strong and diverse investment and financing demands.

The new bourse in Beijing will improve from many aspects the capacity of the country’s multi-level capital market for serving SMEs, thus adding fresh impetus to the implementation of innovation-driven development and the building of the new “dual circulation” development paradigm, according to the official.

The BSE can strengthen the basic functions of China’s capital market and support SMEs in realizing innovative development with the help of the capital market, the official noted.

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