As of now, the Beijing Stock Exchange (BSE) has a total of 254 listed companies, with more than half classified as national-level specialized and innovative “little giant” firms. On average, each company holds 22 invention patents and boasts a research and development intensity of nearly 5%, which is roughly three times the average level of larger enterprises. Impressively, over 80% of these companies reported profits in the first half of this year.
On October 18, the parallel forum titled “Supporting Small and Medium Enterprises on the Path of Specialization and Innovation to Better Serve New Quality Productive Forces” took place during the 2024 Financial Street Forum Annual Meeting in Beijing. This information was shared by Zhou Guihua, Chairman of the Beijing Stock Exchange, during the event.
Established on September 3, 2021, the BSE is China’s first company-type securities exchange, approved by the State Council. It officially commenced trading on November 15, 2021. Zhou highlighted that the BSE has developed diverse listing standards tailored to the characteristics of innovative small and medium enterprises, effectively expanding the services offered by the exchange. It has become a crucial platform for supporting SMEs in their specialized and innovative development path.
He emphasized that the BSE has facilitated over 53 billion yuan in financing for innovative SMEs, with more than 80% of the raised funds allocated to areas such as green and low-carbon initiatives, the digital economy, high-end equipment manufacturing, and new materials. These efforts have played a pivotal role in strengthening supply chains, supporting transformations and upgrades, and fostering new growth drivers.
Zhou also mentioned that the establishment of the BSE has encouraged venture capital to invest earlier, at smaller scales, and with a long-term focus on hard technology. Currently, nearly 90% of the listed companies on the BSE received investment from venture capital firms prior to going public, with an average of four venture capitalists involved per company. This allows for a more diverse and easier exit strategy through methods such as public listings and mergers and acquisitions.
He pointed out that the BSE is committed to conducting in-depth research on the characteristics and needs of SMEs in terms of technological innovation. The exchange aims to assess and refine its listing mechanisms, optimize financing and acquisition arrangements, and enrich its product and tool offerings to support high-quality enterprises that represent the direction of new productive forces.
Zhou stated that the BSE will adhere to the philosophy of “open service, direct service, and precise service,” enhancing its service system and content for SMEs focused on technological innovation. The goal is to further promote investment and financing connections, encourage industry players to actively embrace China’s unique financial culture, and support enterprises in capitalizing on the opportunities in the capital markets to strengthen and enhance their operations.
