Beijing supports innovative SMEs as specialized board gets 50 new listings
Published: Aug 24, 2023 08:42 PM
China Securities Regulatory Commission (CSRC) in Beijing Photo:VCG

China Securities Regulatory Commission (CSRC) in Beijing Photo:VCG

Fifty innovative small and medium-sized enterprises (SMEs) were listed on a specialized board for trading in Beijing on Thursday, supporting the innovative sectors of the economy as China rolls out measures to invigorate the capital market.

Operated by the Beijing Equity Trading Center, an equity transaction bourse, the board marks a new effort by the capital city to tap the regional equity market to support small and innovative firms.

Leading innovative SMEs are referred as "little giants" and they specialize in niche sectors, have good market shares and possess innovation capacity.

In June, the China Securities Regulatory Commission (CSRC) approved the establishment of nine specialized boards. Four are already operating, including the one in Beijing and another in Central China's Hubei Province.

Su Guobin, deputy director of the Beijing Municipal Bureau of Economy and Information Technology, said the specialized board will be forged into a policy high ground and will strive to pilot breakthroughs such as the issuance of SME bonds and preferred stocks.
Zhou Yunnan, a Beijing-based veteran investor, told the Global Times on Thursday that by enhancing cooperation with the Beijing Stock Exchange (BSE), the new board will serve as a grooming ground for candidates for high-quality listings on the BSE, Zhou said.

A hub of China's high-tech sector, Beijing has 795 national-level "little giants" and 6,323 niche SMEs. 

The specialized board could absorb more than 200 such niche SMEs by the end of year and more than 1,000 by-end 2025, Zhou said. 

SMEs are responsible for nearly 50 percent of the nation's tax revenue and 60 percent of its GDP. They also contribute 70 percent of the country's technological innovation and 80 percent of urban employment.

Following a key Party meeting on July 24, China rolled out targeted and substantive measures to invigorate the capital market and boost investor confidence.

On August 18, the CSRC announced support policies, including cutting transaction fees, developing equity funds and considering the creation of a "green channel" for technology companies that aim for breakthroughs in core technologies.
The BSE has gathered more than 200 listed companies after more than a year of development, according to a Xinhua News Agency report at the end of June.