Three Years of the Beijing Stock Exchange: A Game-Changer for China's SMEs
The Beijing Stock Exchange (BSE), the cradle of innovation-driven SMEs, marks its third anniversary with remarkable achievements. From fostering cutting-edge technology to enhancing market dynamics, the BSE has proven its pivotal role in supporting small and medium-sized enterprises (SMEs).
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Built for Growth
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With 257 listed firms valued at over 660 billion yuan ($91.7 billion), the BSE stands out by focusing on SMEs. Over 90% of its companies are high-tech enterprises, with more than half designated as national-level “Little Giants.” Around 80% of funds raised have been directed toward critical sectors like green development, digital economy, and advanced manufacturing.
The exchange has also attracted significant venture capital interest: nearly 90% of listed firms had VC support before going public, with an average of four investors per company.
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A Growing and Dynamic Market
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The BSE's vibrant trading activity reflects its increasing appeal. Daily trading volumes in 2024 averaged 95 billion yuan, with turnover rates exceeding 4%. The investor base has grown to 7.6 million qualified participants, while mutual funds and private equity firms are deepening their involvement.
Market structure is evolving as well, with a notable rise in mid-cap companies valued between 20 and 50 billion yuan.
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Empowering Innovation Through Policy
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The BSE's tailored policies have made it a vital platform for SMEs. Flexible listing standards and connections to the "New Third Board" ensure seamless support for firms at various growth stages. On average, listed companies boast an R&D intensity of 5% and hold over 20 invention patents, cementing the exchange's role as a hub for innovation.
“By embracing high-growth sectors with supportive review processes, the BSE has become a magnet for quality companies,” said Ma Yao of CITIC Securities.
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Looking Ahead
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The BSE is gearing up for the future with plans to refine listing standards, launch specialized indices, and introduce products like ETFs and convertible bonds. It also aims to balance investment and financing by nurturing long-term capital and offering SMEs flexible funding mechanisms.
As Cheng Fengchao, Advisor at the China Association for Public Companies, noted: “The BSE provides SMEs the tools they need to innovate and grow, driving high-quality development across China.”
At just three years old, the BSE is not only transforming SMEs but also redefining its role in China's economic evolution. It's a platform with a mission—and a movement worth watching.
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