Veteran regulator Xu Ming has been tapped to head the Beijing Stock Exchange, which will cater to small and medium-sized enterprises, serving as its legal representative and chairman.
- Xu joined the National Equities Exchange and Quotations (NEEQ) in 2018, where he was promoted as chairman and party secretary in January. He earlier served as general manager at the China Securities Investor Service and deputy manager at the Shanghai Stock Exchange.
- NEEQ is the sole shareholder of the Beijing Stock Exchange, which will provide fundraising channels for SMEs. Xu will retain his role as NEEQ while serving as chairman of the Beijing Stock Exchange.
- The 66 companies in NEEQ’s top tier are proposed to move to the Beijing Stock Exchange, with a cumulative worth of 186 billion yuan. The other two tiers will remain, and only companies listed in the Innovation for over a year will be able to list on the new bourse.
- Applicants will be required to have at least 200 million yuan in capitalization and at least 25 million yuan in net profit in the year prior to the listing. Firms yet to generate profits are required to meet a minimum market capitalization between 400 million yuan and 1.5 billion yuan.
Price movement on the first day of trading will not be capped, but a 30% daily limit will be implemented after.
FXI is up 2.09%.