China’s President Xi Jinping stated that the country would establish a stock exchange in Beijing to serve smaller businesses, according to a report by Reuters on Thursday.
Mainland China’s two major stock exchanges in the financial hub of Shanghai and Shenzhen, on the mainland’s border with Hong Kong.
In a video addressing the launching China International Fair for Trade in Services (CIFTIS), Xi stated that China would continue to support the innovation-driven development of SMEs.
The support would be done “by deepening the reform of the New Third Board and setting up the Beijing stock exchange as the primary platform serving innovation-oriented SMEs.”
In March, China was considering establishing a bourse to attract foreign-listed companies and boost the global status of its onshore share markets.
The upgrade of Beijing’s existing equity exchange for small and mid-sized firms, known as the New Third Board.
China’s securities regulator stated setting up a Beijing stock exchange would help to deepen financial supply-side structural reforms and improve capital market systems.