China to set up new stock exchange for SMEs

Details:

• The Beijing exchange will focus on hosting “innovative” small and medium-sized enterprises, according to a statement from China’s securities regulator.
• The new bourse will also provide additional fundraising opportunities for companies, alongside the country’s existing stock exchanges in Shanghai and Shenzhen.

Dive deeper:

• The establishment of an alternative stock exchange comes amid Beijing’s heightened scrutiny over Chinese companies seeking to list overseas. China also plans to propose new rules that would ban firms with large amounts of sensitive consumer data from going public in the US.
• Earlier this year, China issued fines against 12 companies – including ride-hailing platform Didi Chuxing and search engine Baidu – over 10 investment deals in the internet sector that allegedly violated the country’s anti-monopoly law.