China to enrich products in Beijing Stock Exchange, promote high-quality expansion
Published: May 19, 2023 10:48 PM
Beijing Stock Exchange. Photo: CFP

Beijing Stock Exchange Photo: VCG

The China Securities Regulatory Commission (CSRC) said on Friday that it will keep enriching products in the Beijing Stock Exchange (BSE), in a bid to promote a high-quality expansion of the market.

Lu Songbin, an official with the CSRC, made the remarks at a meeting, the Shanghai Securities News reported.

The CSRC will adhere to the market-oriented development direction, continue to optimize the issuance and listing system, and focus on reducing the cost and waiting time for companies to go public, Lu said.

The CSRC said it will continue expanding the investor base and guide public offering funds to raise investment in the companies listed on the exchange. It will continue to enrich the product system of the BSE, support the BSE to develop corporate bonds, and improve the index system. Further, it will improve market-making transactions, margin financing and securities lending businesses to strengthen multi-level market interconnection.

The CSRCS said it will resolutely investigate and deal with the violations of laws and regulations such as insider trading, market manipulation and financial fraud, and effectively protect the legitimate rights and interests of investors.

A high-quality construction of the BSE is "a key move" for the capital market to support the development of innovative small and medium-sized enterprises, Lu said.

Compared with the expectations of the people, the total market size of the BSE is relatively small, and there is still a long way to go before it becomes a mature market, Lu added.

In February, the BSE launched the market-making trading business, in a further move to promote market reform and innovation, improve the market trading system, and enhance market vitality and resilience.

A total of 15 market makers have been approved by the CSRC for its market-making trading business of listed securities, 13 of which will participate in the trading business on the Beijing bourse, the BSE said in a statement on its website.

The BSE was officially launched on November 15, 2021, with the debut of the first batch of 81 firms, officially inaugurating a third addition to China's A-share market alongside its 30-something-year-old big brothers in Shanghai and Shenzhen.

Up to now, there are 5.44 million qualified investors in the BSE.