Beijing Stock Exchange brings new business lines to improve SME market

The Beijing Stock Exchange has introduced new business lines to improve a market serving small and medium-sized enterprises (SMEs), a year after President Xi Jinping announced the establishment of the stock exchange.

The exchange released draft rules for margin trading and securities lending on Friday, introduced its first benchmark and launched government bond issuance activity.

Chinese President Xi Jinping said on September 2 last year that the country would establish a stock exchange in its capital as a main platform to serve innovation-driven SMEs.

The Beijing Stock Exchange said in a statement that margin trading and securities lending will enrich investors’ trading strategies and improve the pricing function of the market.

The exchange also launched its first general index – the Beijing Stock Exchange 50 Index – comprising 50 large liquid companies, to reflect overall market performance.

Meanwhile, China’s securities regulator announced the launch of government bond issuance activity on the Beijing Stock Exchange.

The new activity is an important measure to develop the stock market‘s bond market and support the development of the real economy, the China Securities Regulatory Commission said.

The Beijing Stock Exchange is still relatively small and less developed compared to the two major Chinese stock exchanges located in the financial center of Shanghai and the technology hub of Shenzhen.

China’s major stock indices plunged sharply this year as the economy struggles to recover from repeated COVID-19 lockdowns and a declining property market.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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