More than 80 companies started trading connected the Beijing Stock Exchange, which is expected to complement 2 main bourses successful Shanghai and Shenzhen.
A caller Chinese banal speech focused connected SMEs began trading successful Beijing connected Monday, boosting enactment for smaller-scale firms arsenic economical maturation slows and Beijing cracks down connected home tech giants.
More than 80 companies started trading connected the Beijing Stock Exchange, which is expected to complement 2 main bourses successful Shanghai and Shenzhen by catering to smaller enterprises, which person agelong faced trouble getting backing from banks.
Chinese media reported Monday that shares of 10 recently listed companies connected the speech roseate by much than 60 percent, triggering impermanent suspensions.
Auto parts shaper Henan Tongxin Transmission Co made the biggest gains, surging astir 494 percent by the close, and media reported that the 10 caller stocks roseate an mean of astir 200 percent from their contented prices.
But the 71 different firms migrated from an existing committee posted mixed performances.
Stocks volition not beryllium allowed to emergence oregon autumn much than 30 percent successful a azygous trading time connected the exchange, though earlier reports said determination would beryllium nary headdress for the archetypal time of listing.
The caller speech is captious for "improving financial support for SMEs, arsenic good arsenic promoting innovation-driven development", Yi Huiman, the president of the China Securities Regulatory Commission, said astatine an opening ceremony.
The caller speech follows the 2019 motorboat of a Nasdaq-style committee focused connected subject and exertion listings connected the Shanghai Stock Exchange.
It comes arsenic authorities determination to make the country's capital markets amid slowing economic growth, and arsenic Beijing clamps down connected tech giants successful a bid to stem the sector's assertive expansion, alleged information misuse and monopolistic practices.
The Beijing speech provides a capital-raising conduit for SMEs and takes successful companies connected the apical tier of China's existing National Equities Exchange and Quotations (NEEQ), founded successful 2012.
The NEEQ is an entry-level, over-the-counter stock trading level allowing firms to rise funds earlier listing connected a stock exchange.
Seventy-one companies from the NEEQ—or "New Third Board"—were transferred to the Beijing speech and 10 others were listed directly.
The Beijing exchange's rules let it to process listing applications much rapidly than immoderate different boards.
Hong Hao of fiscal services steadfast Bocom International told AFP that the exchange's semipermanent occurrence "remains to beryllium seen".
"You request to person credible companies to beryllium listed connected the exchange, to make capable interest," helium said.
Many Chinese companies including giants specified arsenic Alibaba and Baidu person successful the past listed connected the much developed US exchanges.
But Beijing has been pressing companies to alternatively database connected location soil, and Chinese firms hoping to commercialized shares successful the United States look heightened scrutiny from regulators determination arsenic the economical and tech rivalry betwixt the 2 countries deepens.
But Hong Kong remains a much apt determination for ample Chinese companies seeking to database extracurricular the country's mainland, observers note.
© 2021 AFP
Citation: Trading begins connected caller Beijing Stock Exchange (2021, November 15) retrieved 15 November 2021 from https://techxplore.com/news/2021-11-beijing-stock-exchange.html
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