BEIJING, Sept. 2 (Reuters) – Chinese President Xi Jinping on Thursday announced that the country will establish a stock exchange in its capital, Beijing, serving small and medium-sized enterprises (SMEs).
Mainland China’s two main stock exchanges are located in the financial center of Shanghai and in the southern city of Shenzhen, on the mainland’s border with Hong Kong.
In a video address at the opening of the China International Trade in Services Fair (CIFTIS), Xi said China will continue to support innovation-driven SME development.
This would be done by “deepening the reform of the new third council and making the Beijing Stock Exchange the main platform serving innovation-driven SMEs,” he added.
Reuters reported in March that China was considering setting up an exchange to attract overseas listed companies and bolster the global status of its onshore stock markets, citing sources with knowledge of the matter. Read more
The sources then said that improving Beijing’s existing stock exchange for small and medium-sized businesses, known as the new third board, was among the options being discussed.
China’s securities regulator said establishing a Beijing stock exchange would help deepen structural reforms on the financial supply side and improve capital market systems.
In a statement issued shortly after Xi’s remarks, the China Securities Regulatory Commission (CSRC) said its executives were “excited” by the prospect, that they would study the president’s proposal in depth and put it into practice. resolutely implemented.
“Small and medium-sized businesses can do great things,” the CSRC added.
In other comments to his speech to mark the opening of CIFTIS, a trade fair in Beijing, Xi said China would “create more opportunities for cooperation by strengthening support for the growth of the services sector in the countries. of the Belt and the Road “.
The Belt and Road Initiative is Xi’s signature trade and infrastructure program.
China will support Beijing and other localities in “aligning national rules with those of high-level international free trade agreements and in building digital trade demonstration zones,” the president added.
Beijing press room report; written by Tom Daly Editing by Raissa Kasolowsky, Barbara Lewis and Bernadette Baum
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