The new Beijing Stock Exchange started trading on Monday, with shares of the 10 companies that carried out initial public offerings (IPOs) on the new bourse rising as much as six-fold and triggering circuit breakers, reports Reuters. A total of 81 stocks initiated trading to mark the official launch of the exchange—which has been set up to serve small and medium-sized enterprises (SMEs), underpinning Chinese leader Xi Jinping’s common prosperity policy aimed at reducing wealth gaps in the country.
“It’s a pretty good performance for the first day. I don’t see a lot of froth,” said Yang Hongxun, an analyst at investment consultancy Shenguang. “With President Xi endorsing the exchange, I see little chance of this market failing.”
Performance was mixed for the other 71 stocks, which were transferred to the new bourse from the ‘select tier’ of Beijing’s over-the-counter New Third Board. The launch of the Beijing exchange is a landmark in China’s capital market reforms, said Yi Huiman, chairman of the China Securities Regulatory Commission (CSRC).