Beijing Stock Exchange celebrates third anniversary

By AJP Posted : September 3, 2024, 09:53 Updated : September 3, 2024, 09:53
Xinhua-Yonhap
SEOUL, Sept. 3 (AJP) - Monday marked three years since Chinese President Xi Jinping announced the establishment of the Beijing Stock Exchange (BSE) at the 2021 China International Fair for Trade in Services. As the capital's first bourse, the BSE has rapidly evolved into a catalyst for innovation-oriented small and medium-sized enterprises (SME).

Since its inception, the BSE has implemented various institutional innovations and market reforms. Analysts predict it will become a well-regulated, influential, and dynamic stock market in the coming years. They note that improved capital market services for China's sci-tech innovations will contribute to the development of new quality productive services and facilitate the country's economic upgrade.

In its short history, the BSE has directed significant capital to SMEs focused on technological breakthroughs, advanced manufacturing, and green development. It has become a key driver for developing new quality productive forces and specialized, high-end, innovation-driven SMEs, known as "little giants."

Recent data shows the BSE has over 7 million eligible investors, including institutional investors such as private equity firms, public funds, and insurance companies. As of Sunday, 251 companies were listed on the exchange, with a combined market capitalization of 300 billion yuan ($42.23 billion). Over 90 percent of these are high-tech companies.

The BSE has consistently adhered to its strategic positioning and development goals, implementing multiple trading systems and attracting diverse investors. An anonymous manager of a Beijing-based new material company praised the BSE as an ideal platform for SMEs to access capital and expand R&D and production investments.

Launched just two months after its announcement, the BSE aims to address the long-standing financing challenges faced by SMEs. In September 2023, the China Securities Regulatory Commission released guidelines to drive the BSE's high-quality development, calling for better-quality listings, more mutual-fund products, and increased participation from overseas investors.

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