Beijing’s New Stock Exchange Issues Draft Listing Rules

What’s new: China’s newly planned third stock exchange took a step toward opening by issuing for public consultation its proposed listing rules.

The draft rules on public offerings, refinancings and restructurings were published Friday on the bourse’s newly launched official website, www.bse.cn.

The proposals outline some simplified and streamlined review processes, drawing on the experiences of the registration-based initial public listing pilot programs on the tech-savvy STAR Market in Shanghai and the ChiNext board in Shenzhen.

Why it matters: Chinese President Xi Jinping announced plans to set up a third national stock exchange in Beijing last week to expand financing for innovative small and medium-sized companies. The new exchange is expected to play a role in expanding funding channels for Chinese companies that face growing hurdles to selling shares in the U.S. amid rising tensions.

With registered capital of 1 billion yuan ($155 million), the new bourse is wholly owned by National Equities Exchange and Quotations Co. Ltd. (NEEQ), an over-the-counter stock market. The first batch of draft trading rules of the Beijing Stock Exchange was issued last week.

Related: Four Things to Know About Beijing’s New Stock Exchange for Small Companies

Contact editors Han Wei (weihan@caixin.com) and Bob Simison (bobsimison@caixin.com)

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