China intends to create a new stock exchange in Beijing for small and medium-sized companies. The decision was stated by the Chairman of the People’s Republic of China Si Jinping, noting that it was accepted against the background of the Sector Support Policies, Reuters reports.
“We will continue to support the development of small and medium enterprises stimulated by innovation, creating a Beijing stock exchange as the main site for SMEs focused on innovation,” he said in the video in the opening of the International Fair of Commerce Services.
Currently, the country’s largest platforms work in the regions – Shengzhen and Shanghai, there is also an exchange in Hong Kong, but there are their own economic laws. In addition to accommodation on stock exchanges within the state, Chinese companies also actively attracted money as part of an IPO abroad. However, in recent months, Beijing has strengthened pressure on business that makes it difficult for companies to access investors, which led to a conflict with the United States.
The Chinese authorities emphasized that they would allow companies to exit on the stock exchange only subject to the security of personal data. The representative of the Cyberspace Department of the country indicated that this requirement, along with compliance with the Chinese law, should keep in mind all companies planning listing. Conditions should enter the new PRC policy on the protection of information infrastructure.