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Chinese President Xi Jinping Announces Plans to Establish Stock Exchange in Beijing

© REUTERS / Damir SagoljChina's President Xi Jinping speaks at a news conference after the closing of G20 Summit in Hangzhou, Zhejiang Province, China, September 5, 2016. REUTERS/Damir Sagolj/File Photo
China's President Xi Jinping speaks at a news conference after the closing of G20 Summit in Hangzhou, Zhejiang Province, China, September 5, 2016. REUTERS/Damir Sagolj/File Photo - Sputnik International, 1920, 02.09.2021
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At the moment, the shares of a majority of publicly traded Chinese companies are listed on the Hong Kong Stock Exchange – the fastest growing stock exchange in the Asian region today.
Chinese President Xi Jinping has announced that the country will establish a new stock exchange based in Beijing. According to him, the new exchange will focus on smaller Chinese companies. 
"We will continue to support the innovation-driven development of small- and medium-sized enterprises by [...] setting up the Beijing Stock Exchange as the primary platform serving innovation-oriented SMEs [small- and medium-sized enterprises]", Xi Jinping said.
In addition, the Chinese president promised to "deepen" reforms of the "new third board", also known as the National Equities Exchange and Quotations (NEEQ) – an entity first established in 2006 to help promising Chinese start-ups. Under the wave of reforms announced back in 2019, NEEQ began differentiating between various SMEs based on their performance – the exchange would select the best performing firms and then help them develop further, attract financing, and go public on a stock market.
The new financial institution will complement two mainland Chinese exchanges, the Shanghai and Shenzhen Stock exchanges, and one located in Hong Kong - the Stock Exchange of Hong Kong. The financial hub in Shenzhen is known to mostly list the subsidiaries of companies with state interest, while the Shanghai Stock Exchange is considered the biggest stock exchange in the Asian region.
A significant portion of Chinese companies are listed on the Hong Kong exchange, which is currently the fastest growing in Asia. It benefits from the special financial regime that allows free access of foreign investors thus giving listed companies the opportunity to trade worldwide.
A currency trader gestures at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Thursday, July 9, 2020. - Sputnik International, 1920, 07.09.2020
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