A new stock exchange will be created in Beijing as part of an attempt to support the development of Chinese small and medium-sized businesses and the country’s capital markets. China’s leader, Xi Jinping, told an international trade fair on Thursday that the new exchange will serve “innovation-orientated SMEs,” reports the Financial Times.
The announcement is China’s latest effort in a long-running campaign to develop its onshore capital markets. Focus has been sharpened in recent months following rising regulatory scrutiny of offshore listings in the US and China, which has cast doubt over the long-term future of Chinese companies listed in the United States.
“This is a clear-cut example of Beijing seeking to make markets serve the real economy and specifically its long-term development objectives,” Rory Green, head of China research at TS Lombard, told the FT.