China publishes rules for new Beijing Stock Exchange

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SHANGHAI (Reuters) – China on Saturday released a set of rules for the new Beijing Stock Exchange, approaching the official launch of a market designed to fund innovative start-ups.

The exchange was set up last month in the Chinese capital, complementing two other exchanges in Shanghai Business Center and the southern city of Shenzhen.

The creation of the Beijing Stock Exchange is part of President Xi Jinping’s strategic plan to develop Chinese capital markets and will support innovation and small and medium-sized enterprises (SMEs), the China Securities Regulatory Commission said on Saturday ( CSRC).

The rules, which were released by the CSRC following a public consultation, aim to regulate public offerings, information disclosure and corporate governance for the Beijing Stock Exchange. They will come into effect on November 15.

China has stepped up support for SMEs struggling with an economic downturn, while cracking down on tech giants as part of President Xi’s vision of “common prosperity,” a policy to narrow the gap between the rich and the poor.

On Friday evening, the CSRC released draft guidelines that will require the disclosure of better information in company prospectuses under China’s registration-based IPO system, on which the Beijing Stock Exchange will be. based.

The Shanghai STAR Market and the board of directors of Shenzhen-based start-up ChiNext have also adopted a US registration-based IPO mechanism, which gives the market a greater role in the market. valuation and pricing of IPOs.

Reporting by Samuel Shen and Andrew Galbraith; edited by Clélia Oziel

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