About 22 companies plan to re-list on the Beijing Stock Exchange
This marks a boom for the Beijing Stock Exchange, which aims to improve the financing system for small and medium-sized businesses
A total of 22 companies have applied for a second listing on China’s Beijing Stock Exchange so far this year, marking a 200-day-old stock market boom for small and medium-sized businesses.
The companies have applied for listing on the “New Third Board” (Chinese: 新三板), which refers to the so-called “Innovation Level” of the National Equities Exchange and Quotations (NEEQ) OTC Beijing. Companies can enter the new exchange from the “select level” of the NEEQ.
Companies planning to re-list for the board included Vichnet (Chinese: 纬诚科技), Suzhou Homesun Pharmaceutical (Chinese: 弘森药业), and Chongqing Mexin Yishen Machinery (Chinese: 美心翼申).
After their delisting from the NEEQ, several companies failed to enter the A-share market which trades on the Shanghai Stock Exchange and the Shenzhen Stock Exchange, and they became determined to return to the NEEQ or try to be listed on the Beijing Stock Exchange.
“Since its establishment, the status of the Beijing Stock Exchange has improved significantly and it has become more attractive to businesses,” said Zhang Keliang, general manager of stock exchange business at Yintai Securities, adding that the companies that re-applyed for listing this year are relatively high quality companies that can be listed.
“The Beijing Stock Exchange has boosted the confidence of small and medium-sized businesses through stocks,” he said.