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Draft rules for new Beijing SME stock exchange issued

China’s newly-announced third stock exchange has issued its proposed listing rules for public consultation, moving a step closer to opening, reports Caixin. The draft rules on public offerings, refinancings and restructurings were published Friday on the bourse’s newly-launched official website, www.bse.cn.

Chinese leader Xi Jinping announced plans to set up a third national stock exchange in Beijing last week to expand financing for innovative small and medium-sized companies. With registered capital of RMB 1 billion ($155 million), the new bourse is wholly owned by National Equities Exchange and Quotations (NEEQ), an over-the-counter stock market.

The proposals outline some simplified and streamlined review processes, drawing on the experiences of the registration-based initial public listing pilot programs on the tech-savvy STAR Market in Shanghai and the ChiNext board in Shenzhen. The new exchange is expected to play a role in expanding funding channels for Chinese companies that face growing hurdles to selling shares in the US amid rising tensions.

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