China Roundup: Beijing exchange for SMEs begins trading, and more

Government-endorsed new stock exchange starts trading in Beijing

• President Xi Jinping had announced plans to set up a bourse dedicated to SMEs two months ago.
• 81 stocks will be traded on the stock exchange this week.
• In the future, companies on the Beijing stock exchange can move directly to Shenzhen’s ChiNext or Shanghai’s Star market, which currently hosts companies with larger market caps.

Cyclone Robotics banks US$150 million in series C funding

• The round was led by CMC Capital and Goldman Sachs Asset Management, and saw participation from Lavender Hill Capital Partners, ZWC Partners, China V Fund, DCM, Matrix Partners, and Source Code Capital.
• Cyclone Robotics claimed the deal was the largest financing round for Chinese robotic process automation company.
• The startup currently has 500 employees and serves almost 1,000 customers in the Asia Pacific, the Middle East, and Europe. the firm established a Singapore branch in early 2021.

Baidu launches social metaverse app called Xirang

• The app allows users to enter a virtual world that offers several scenarios for exploration.
• The scenarios offer virtual reality-based environments linked to education, marketing, product exhibition, training, and industrial park business.
• Earlier this year, Baidu organized several conferences such as Def Con China Party and Baidu World Congress in VR-based environments.

China to enforce additional check for Hong Kong IPOs

• The government said approval would be needed if a company’s service had a potential impact on China’s national security.
• The security check is part of Beijing’s effort to tighten control over information collected by private firms.
• At the same time, the government also put in place a rule that requires internet platforms with more than 100 million daily active users to obtain government approval on major updates. Internet companies that use AI, VR, and other modern tech, also need to seek security approval.