On the evening of September 2, the China Securities Regulatory Commission (CSRC) announced that it would deepen the reform of the New OTC Market and establish the Beijing Stock Exchange.

The CSRC responsible official said it will coordinate the layout of multi-level capital market development, promote a sound capital market whole-chain system for serving the innovation and development of SMEs, and effectively serve as a capital market professional development platform for SMEs with the characteristics of "professionalization, refinement, specialization, and novelty".

The key points related to the news are as follows.

Formation of the Beijing Stock Exchange based on the existing New OTC Market Select Tier

The Beijing Stock Exchange firmly adheres to its market positioning of serving innovative SMEs

The Beijing Stock Exchange adheres to the staggered development and interconnection with Shanghai and Shenzhen exchanges and regional equity markets, and plays a good role in transferring the listing function to the board

The Beijing Stock Exchange and the existing innovative and basic layers of the New OTC Market will adhere to coordination and system linkage to maintain a balanced market structure

The main idea of building the Beijing Stock Exchange is to strictly follow the Securities Law, follow the principle of step-by-step implementation and gradual progress, to generally shift the basic systems of the selected layers, insist that the Beijing Stock Exchange public company be generated by the innovation layer companies, maintain the "progressive layers" of the basic layer, innovation layer and Beijing Stock Exchange on the New OTC Market, and pilot the market structure simultaneously. The market structure of the "layers" is maintained, and the registration system for securities issuance is piloted simultaneously. In the implementation process, will focus on grasping the following principles.

Adhere to "one positioning".

The Beijing Stock Exchange will firmly adhere to the market positioning of serving innovative SMEs, respect the development rules and growth stages of innovative SMEs, and enhance the inclusiveness and precision of the system.

Handling "two relationships".

First, the Beijing Stock Exchange insists on staggered development and interconnection with Shanghai and Shenzhen exchanges and regional equity markets, and plays a good role in transferring the listing function.

Second, the Beijing Stock Exchange and the existing innovation layer and basic layer of the New Third Board will insist on coordination and system linkage to maintain a balanced market structure.

Achieving "three objectives".

First, to build a set of basic institutional arrangements covering issuance and listing, trading, delisting, continuous supervision, and investor suitability management that fit the characteristics of innovative SMEs, so as to make up for the shortcomings of multi-level capital market development of financial inclusion.

Secondly, it is to smooth the role of the Beijing Stock Exchange in linking the multi-level capital market to form a mutually complementary and mutually promoting path for the growth of direct financing for SMEs.

The third is to cultivate a number of SMEs with the characteristics of " professionalization, refinement, specialization, and novelty", forming a healthy market ecology with high enthusiasm for innovation and entrepreneurship, enthusiastic participation of qualified investors, and intermediaries returning to their positions and responsibilities.