Beijing Stock Exchange allows companies to list on November 15
SHANGHAI, Nov. 11 (Reuters) – The new Beijing Stock Exchange in China approved applications for the listing of shares of 10 companies on Nov. 15, documents filed by the companies said on Wednesday, two months after Chinese President Xi Jinping announced the establishment of a stock exchange for small and medium enterprises. companies.
The companies, currently listed on the so-called “Innovation Level” of the Beijing National OTC Stock Exchange, known as the “New Third Board,” said in separate statements that their shares would be listed on the Beijing Stock Exchange. next Monday.
The companies include Beijing Henghe Information Technology Co, Keda Automation Control, and Anhui Jingsai Technology Co.
China’s securities regulator said the new exchange will complement existing exchanges in Shanghai and Shenzhen. Investors expect a busy trading start in light of sparkling launches of other boards, such as the Shanghai STAR Market in 2019.
A set of rules for the Beijing Stock Exchange was released last month. Individual investors qualified to trade must have at least 500,000 yuan ($ 77,459) of assets in their stock accounts.
“This underscores the speed and efficiency of the launch of the Beijing Stock Exchange,” said Zhou Yunnan, a seasoned investor in the New Third Board, on which the new exchange is based.
“It is imperative to launch the stock exchange, which is responsible for deepening reforms of the Chinese capital market,” he added.
China has stepped up support for small and medium-sized enterprises struggling with an economic downturn, while attacking tech giants as part of President Xi’s “common prosperity” goal, a policy aimed at reducing the economy. gap between rich and poor.
The Beijing Stock Exchange will use a registration-based initial public offering (IPO) mechanism, which will pave the way for the listing system to be rolled out on China’s main boards, Morgan Stanley said. Read more
At present, only ChiNext in Shenzhen and the technology-focused STAR Market in Shanghai have adopted an American-style IPO system.
Reporting by Jason Xue and Andrew Galbraith; Editing by Kenneth Maxwell
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