Beijing Stock Exchange

Beijing Stock Exchange. The Beijing Stock Exchange is a national securities exchange established in Beijing to serve innovative small and medium-sized enterprises. It was officially launched by President Xi Jinping in 2021 as part of a strategic initiative to deepen capital market reforms. The exchange operates under the supervision of the China Securities Regulatory Commission and is a key component of the multi-level capital market system in China.

History and establishment

The establishment was formally announced by President Xi Jinping during the 2021 China International Fair for Trade in Services held in Beijing. This move was a direct implementation of the national strategy outlined during the 19th National Congress of the Chinese Communist Party to foster innovation. The creation was designed to build upon the existing National Equities Exchange and Quotations system, often referred to as the "New Third Board." Key regulatory bodies, including the China Securities Regulatory Commission and the State Council, collaborated on the framework. The inaugural trading session was held on November 15, 2021, with 81 companies initially transferring from the NEEQ Select Layer.

Trading and operations

Trading operates on a centralized auction system, with price limits set at 30% for new listings and 30% for regular trading days, as stipulated by the China Securities Regulatory Commission. The primary trading mechanisms include competitive pricing and market-making systems to enhance liquidity. Settlement and clearing are managed by the China Securities Depository and Clearing Corporation under a T+1 settlement cycle. The benchmark index, the BSE 50 Index, tracks the performance of the top 50 companies by market capitalization and liquidity. The exchange utilizes advanced technology platforms developed in collaboration with entities like the Shanghai Stock Exchange and Shenzhen Stock Exchange to ensure efficient operations.

Listing requirements and companies

Listing criteria are tailored for "specialized and sophisticated" enterprises that produce "novel and unique" products, a classification emphasized by the Ministry of Industry and Information Technology. Key financial thresholds include a minimum market capitalization and profitability standards, which are generally lower than those of the Shanghai Stock Exchange STAR Market. Major early listings included firms like Nantong Great Electric and Anhui Yingliu Electromechanical, which transferred from the NEEQ Select Layer. The sector focus is predominantly on advanced manufacturing, supported by industries highlighted in the Made in China 2025 plan, and modern services. The review process is overseen by the Beijing Stock Exchange Listing Committee following guidelines from the China Securities Regulatory Commission.

Role in China's capital markets

It functions as a critical bridge within the national multi-level capital market system, positioned between the National Equities Exchange and Quotations and the main boards like the Shanghai Stock Exchange. Its primary role is to channel capital to innovative small and medium-sized enterprises, supporting national strategies such as the Dual Circulation Strategy. The exchange facilitates a streamlined upgrade path for companies to eventually list on the ChiNext or STAR Market. This structure is integral to the financial ecosystem managed by the People's Bank of China and supports broader economic policies formulated by the National Development and Reform Commission. Its establishment is seen as a counterbalance to the financial prominence of centers like Shanghai and Shenzhen.

Governance and regulation

The exchange is governed by a board of directors and supervised by the China Securities Regulatory Commission, which sets the overarching regulatory framework. Key regulatory documents include the Securities Law of the People's Republic of China and specific guidelines issued by the CSRC. Day-to-day regulatory enforcement and listing reviews are conducted by the Beijing Stock Exchange Listing Committee. The exchange also collaborates with self-regulatory organizations like the Securities Association of China and the Asset Management Association of China. Its operations are subject to oversight from higher bodies including the State Council and the Central Financial and Economic Affairs Commission, ensuring alignment with national financial stability goals.