Investors Warmly Welcome The Listing on The Beijing Stock Exchange
Investors’ enthusiasm for the Beijing Stock Exchange. Which debuted on Monday, can be seen in the emerging prices of 10 companies trading on the new exchange. Which have soared by more than 60% and triggered the intraday suspension mechanism twice.
Among the 81 companies listed on the SGX, Henan Tongxin Transmission, China’s leading auto parts supplier, soared 493.67% on Monday, the biggest gain in the market. The prices of the other nine companies have risen by more than 100%.
The benchmark Shanghai Composite Index fell 0.16% on Monday.
The daily price fluctuation of BSE listed companies set at 30%. But there is no limit on the first trading day. However, if the company’s price is 30% higher than the opening price, trading will be paused for 10 minutes. If the price totals 60%, it will paused for another 10 minutes.
The mad cow disease, which regarded as cultivating more technologically advanced small and medium-sized enterprises. Developed from the very beginning in only 74 days. The exchange originally built on the selection of the New Third Board. Which is the highest level of the national stock trading system and quotation system with a history of 8 years.
Last year, the average sales revenue of the top 81 BSE listed companies was 600 million yuan ($94 million). Their average net profit was close to 69.4 million yuan. The vast majority of enterprises (87%) come from advanced manufacturing. Modern service industries or strategic emerging industries. With an average annual R&D investment of more than 25.3 million yuan in 2020.
Yi Huiman, chairman of the China Securities Regulatory Commission, said at the opening ceremony of the new exchange that the establishment of mad cow disease marks another important step in the high-quality development of China’s capital market. He said that BSE marks a new starting point for China’s inclusive financial services and should coordinate development with other exchanges in China to build a healthy multi-level capital market.
BSE Chairman Xu Ming said at the opening ceremony that he will work hard to make it easier for small and medium-sized enterprises to enter the exchange. He said that BSE will test more trading products and tools to facilitate company financing.
There are now approximately 2.1 million eligible BSE investors, and the exchange estimates that this number will exceed 4 million by the end of the year.
An analyst at Shenwan Hongyuan Securities predicts that by the end of this year. There will 100 BSE listed companies and 250 in 2022. Moreover, It is estimated that the total financing of BSE listed companies will reach 33 billion yuan next year.
Qian Yu, chairman of UBS Securities, said that the market value threshold of 200 million yuan for BSE listed companies. Without paying attention to net profits, will better serve innovative small and medium-sized enterprises. Further, he said that he hopes BSE will distinguish itself from other boards of directors in China, and become the Chinese version of Nasdaq, where technology startups can grow into large companies.