Who will be listed on China’s new stock exchange?

Which company is listed on China’s new stock exchange?

Companies selected from the National Stock Exchange and Valuation (NEEQ) may be eligible for listing on the new Beijing stock exchange.

An investor watches stock price movements at a securities company in Shanghai, China. Photo: AFP

China will set up a new stock exchange in Beijing, aiming to increase the country’s political and financial influence in the international arena.

At a recent international trade fair, Chinese President Xi Jinping announced a new stock exchange would be established in Beijing, and said he wanted to create a playing field for businesses to set up. service development and innovation. However, when this stock exchange will officially be established remains a mystery, according to CNN.

China currently has two stock exchanges operating in Shanghai and Shenzhen.

Established in 1990, the Shanghai Stock Exchange brings together most of the large-cap companies in China, including state-owned enterprises, banks and energy companies. Meanwhile, the Shenzhen Stock Exchange is a convergence of technology companies, small or medium-sized companies.

As for the Hong Kong Stock Exchange, it operates under its own system of laws and regulations and is not subject to Beijing’s capital controls.

The announcement about the establishment of a new stock exchange in Beijing comes as the Chinese government tightens regulations on large-scale private companies. For nearly a year, Beijing has been trying to moderate the power and influence of these businesses.

Chinese enterprises are facing many regulatory barriers when raising capital in the US. Chinese officials are concerned that the listing of a Chinese technology company abroad could lead to data disclosure risks. sensitivity of user. From the US side, the authorities have also stepped up supervision of the initial public offering (IPO) of Chinese enterprises and asked them to provide more complete information about the risks. potential.

Before that, right in the middle of the trade war with the US, China established the STAR Market Exchange in Shanghai in 2019, to attract investment in Chinese high-tech companies and help the country have a advantage in the competition with the West in technology. Since then, more than 300 technology companies have been listed on STAR Market, with a total market capitalization of more than 4.7 trillion yuan ($728 billion).

In 2013, the Chinese government established an over-the-counter (OTC) exchange in Beijing, called the National Stock Exchange and Valuation (NEEQ). This exchange is widely known as the “new third exchange” in China.

However, NEEQ has lagged behind the Shanghai and Shenzhen stock exchanges in recent years as both its size and liquidity have shrunk. And on September 2, Xi Jinping pledged to reform the NEEQ system.

The China Securities Regulatory Commission (CSRC) later said the new stock exchange in Beijing would be built on the NEEQ platform. According to the agency, companies selected from the NEEQ may be eligible to list on the new stock exchange.

According to the China Securities Regulatory Commission, the new stock exchange in Beijing will complement the Shanghai and Shenzhen stock exchanges, and focus on small and medium-sized enterprises in the field of exchange. creative new.

The agency also said that the IPO registration system, which China piloted in Shanghai two years ago, will be applied to companies that want to list on a new stock exchange in Beijing. However, this system requires companies to provide more information about their operations, to improve market transparency and streamline IPO licensing review processes.