The Beijing Stock Exchange (BSE) officially started trading on Nov. 15 with 81 companies listed on the bourse, including four from Sichuan province.

In the new era, China's economic development is facing transformation. Cultivating more technology-based and innovative small and medium-sized enterprises is a great project for the future of China, and also an important task for China's financial reform. Thus, the BSE came into being and will help promote the Chinese industry to take a road of scientific and technological progress, innovation-led and high-quality development.

Yi Huiman, Chairman of the China Securities Regulatory Commission (CSRC), said the opening of the BSE is a landmark event in the reform and development of China's capital market. The establishment of the BSE is a major decision made by the CPC Central Committee and the State Council to build a new development pattern and promote high-quality development. This is of great significance for further improving the multi-layered capital market, accelerating the improvement of the financial support system for small and medium-sized enterprises, and promoting innovation-driven development and economic transformation and upgrading.

What historical mission will the BSE shoulder in the future? The BSE, along with the Shanghai Stock Exchange, the Shenzhen Stock Exchange and the Hong Kong Stock Exchange, constitute the four major domestic exchanges in China. Although all four are exchanges, each has different responsibilities and characteristics. Among them, the BSE will mainly focus on serving innovative small and medium-sized enterprises, serving other outstanding private enterprises, small and medium-sized enterprises, and promoting China's economic reform and transformation.

Among the first batch of listed enterprises, Sichuan got four entry tickets. The number is second only to Beijing, Jiangsu, Guangdong, Shandong, and Anhui, ranking the sixth in China, the first in central and western China. Specifically, the four Sichuan enterprises are Changhong Energy, Zitonggong Medicine, Bingyang Technology and Zhonghuan Equipment. It is worth mentioning that Zhonghuan just completed the issuance of the select layer in early November, and got the approval of the BSE last Wednesday. It is the first company from Chengdu to be listed on the BSE.

How about the strength of the four Sichuan enterprises listed in the BSE?

Among the first four Sichuan enterprises to appear on the BSE, except Zhonghuan which is newly listed on the BSE, the other three are at the select layer from the new third board. Industry insiders believe that it is a symbol of strength for enterprises to go through rigorous selection, then enter the select layer and finally go public on the BSE. In general, among the first batch of 81 enterprises to land on the BSE, four Sichuan enterprises have performed well in both their industry status in the segmented fields and their business performance. For example, in the 2020 annual report, Changhong Energy achieved revenue of 1.952 billion RMB and net profit of 235 million RMB, ranking 7th and 5th respectively among 81 enterprises. This leading trend has been continuing.

Landing on the BSE, for listed Sichuan enterprises, means a new and convenient financing channel. First, the BSE has attracted many venture capital institutions to join, which will bring ‘timely rain’ for direct financing of enterprises. Secondly, if enterprises want to further become industry leaders, as a link of multi-level capital market, the BSE will play the role of ‘catalyst’. In addition, the BSE will also cultivate a group of specialized new small and medium-sized enterprises, forming a positive market ecology with high enthusiasm for innovation and entrepreneurship, active participation of qualified investors and responsible intermediary agencies. This market ecology will bring various opportunities to Sichuan local characteristic enterprises and small, medium and micro enterprises with certain competitive advantages in the segmented fields.

Source of picture: Beijing Daily