Chinese President Xi Jinping: Beijing To Begin Stock Exchange Serving SMEs
On Thursday, Communist China’s President Xi Jinping announced Beijing would host a new stock exchange for small and medium-sized enterprises (SMEs). China’s two current central stock exchanges are located in Shanghai and Shenzhen.
Mr Xi said China would deepen the New Third Board (small and mid-sized firms) reform and setting up the Beijing stock exchange as the primary platform serving innovation-oriented SMEs in his opening address to the China International Fair for Trade in Services (CIFTIS).
According to Reuters’ inside sources, Beijing had earlier considered upgrading its existing equity exchange for the New Third Board.
The sources also stated that in March, the Communist Chinese Party (CCO) considered establishing a bourse (stock market in a non-English speaking country, predominantly European nations) to catch the eye of overseas-listed companies and fortify the global reputation of its onshore share markets.
China’s securities regulator claimed a Beijing stock exchange would help develop financial supply-side structural reforms while strengthening capital market systems.
The China Securities Regulatory Commission (CSRC) issued a statement saying its leadership was eager to study and implement Mr Xi’s stock exchange proposal.
“Small and medium-sized enterprises can do great things,” the Commission stated.
Mr Xi also said in his speech to the Beijing trade fair that China would create further cooperation opportunities by increasing support for services sector growth in Belt and Road Initiative (BRI) countries. The BRI is China’s global infrastructure development strategy involving countries along the historical Silk Road.
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