China’s Third Bourse in Beijing Expects to Snatch U.S. Listings, Eyeing to Open on 15 Nov

The new Stock Exchange in Beijing, China, is expected to be opened as early as 15 November after the China Securities Regulatory Commission (CSRC) officially released a set of rules on the exchange in a move to support small and medium-sized enterprises (SMEs).

 

Following the tech-heavy STAR Market in Shanghai and start-up board ChiNext in Shenzhen, the Chinese President Xi Jinping introduced a strategic scheme to develop the capital market with an aim to alleviate the bottleneck problem of innovative SMEs that often face difficulty in the fundraising process.

The rules in the Beijing Stock Exchange will be officially implemented on November 15, in which, theoretically, the exchange can officially be opened on that day as well. Still, the specific launch date will be announced in the upcoming days.

The system of the Beijing Stock Exchange will be based on the selection tier of the New Third Board, according to the announcement from CSRC. There are 68 companies on the selection tier, mostly comprising medicine, mechanical equipment, new materials and information technology businesses, where 66 companies reported profit growth in their third-quarter financial reports and 45 of 66 had net profits of more than 30 million yuan (approx. 156 million baht).

 

Experts believed that the new listing will draw innovation-driven innovative companies to seek a domestic listing, instead of a U.S. listing, which recently has escalated regulations on Chinese listings.

In addition to the above mentioned 68 stocks, 13 new listings on the selection layer are expected to join the new exchange. Meanwhile, more than 200 enterprises are preparing for a listing.

Currently, Shanghai Stock Exchange has 2,003 listed companies with a market capitalization of 49.8 trillion yuan. Meanwhile, Shenzhen Stock Exchange has 2,534 listed companies with a market capitalization of 36.9 trillion yuan.