London Daily

Focus on the big picture.
Thursday, Oct 30, 2025

China will create a stock exchange in Beijing

China will create a stock exchange in Beijing

China will set up a new stock exchange in Beijing, giving the nation's capital and political center more influence in the world of business and finance.
President Xi Jinping announced the Beijing-based exchange at an international trade fair on Thursday, saying that he wanted to create a venue for "service-oriented" and "innovative" businesses. He did not say when the exchange would be established.

China already has two stock exchanges on the mainland, but they are located in Shanghai and Shenzhen, far away from Beijing. The Shanghai Stock Exchange, which was established in 1990, hosts mostly large-cap companies, including state-owned enterprises, banks and energy firms. The Shenzhen Stock Exchange has a bigger proportion of tech companies and small or medium-sized firms.

There's also the Hong Kong Stock Exchange, but it is subject to its own legal and regulatory systems and is free of Beijing's capital controls.

The move comes as the Chinese government's regulatory crackdown on large private companies intensifies. Beijing has been working for nearly a year to rein in their power and influence.

And it's being announced as Chinese companies face regulatory hurdles as they try to raise money in the United States. Pressure is coming from Chinese authorities who are increasingly upset about tech firms going public overseas because of concerns about whether they could give foreign governments access to sensitive user data. Meanwhile, US regulators have stepped up scrutiny on Chinese IPOs and required stricter disclosures about potential risks.

It is also the second time Xi has personally announced a stock market initiative. In 2018, as the US-China trade war raged, he unveiled a tech-focused board for startups on the Shanghai Stock Exchange. The creation of the Star Market was intended to channel investment into China's high-tech companies and help the country gain an edge in its competition with the West over tech. Since then, more than 300 tech firms have listed on the board, with a total market cap of more than 4.7 trillion yuan ($728 billion.)

The government also established an over-the-counter system in Beijing in 2013 for trading shares of companies not listed in Shanghai or Shenzhen. It is called the National Equities Exchange And Quotations (NEEQ), and is widely known as the "New Third Board" in China. However, the NEEQ has lagged behind Shanghai and Shenzhen markets in recent years, shrinking in size and liquidity. Xi on Thursday pledged to reform the NEEQ system.

The China Securities Regulatory Commission (CSRC), the country's top securities regulator, later explained that the new Beijing stock exchange will be built on the top of the NEEQ. Selected companies from the NEEQ can qualify to list on the Beijing exchange, the regulator added.

The CSRC also said that the Beijing exchange will complement the Shanghai and Shenzhen stock exchanges and focus on serving "innovative" small and medium-sized businesses.

The registration-based IPO system that China piloted in Shanghai two years ago will be applied to companies seeking to list on the new exchange as well, it added. That system requires companies to make even more disclosures about their operations. It's intended to improve market transparency and reduce an otherwise lengthy regulatory review for IPOs.
Newsletter

Related Articles

0:00
0:00
Close
UK and Vietnam Sign Landmark Migration Deal to Fast-Track Returns of Irregular Arrivals
UK Drug-Pricing Overhaul Essential for Life-Sciences Ambition, Says GSK Chief
Princesses Beatrice and Eugenie Temporarily Leave the UK Amid Their Parents’ Royal Fallout
UK Weighs Early End to Oil and Gas Windfall Tax as Reeves Seeks Investment Commitments
UK Retail Inflation Slows as Shop Prices Fall for First Time Since Spring
Next Raises Full-Year Profit Guidance After Strong Third-Quarter Performance
Reform UK’s Lee Anderson Admits to 'Gaming' Benefits System While Advocating Crackdown
United States and South Korea Conclude Major Trade Accord Worth $350 Billion
Hurricane Melissa Strikes Cuba After Devastating Jamaica With Record Winds
Vice President Vance to Headline Turning Point USA Campus Event at Ole Miss
U.S. Targets Maritime Narco-Routes While Border Pressure to Mexico Remains Limited
Bill Gates at 70: “I Have a Real Fear of Artificial Intelligence – and Also Regret”
Elon Musk Unveils Grokipedia: An AI-Driven Alternative to Wikipedia
Saudi Arabia Unveils Vision for First-Ever "Sky Stadium" Suspended Over Desert Floor
Amazon Announces 14 000 Corporate Job Cuts as AI Investment Accelerates
UK Shop Prices Fall for First Time Since March, Food Leads the Decline
London Stock Exchange Group ADR (LNSTY) Earns Zacks Rank #1 Upgrade on Rising Earnings Outlook
Soap legend Tony Adams, long-time star of Crossroads, dies at 84
Rachel Reeves Signals Tax Increases Ahead of November Budget Amid £20-50 Billion Fiscal Gap
NatWest Past Gains of 314% Spotlight Opportunity — But Some Key Risks Remain
UK Launches ‘Golden Age’ of Nuclear with £38 Billion Sizewell C Approval
UK Announces £1.08 Billion Budget for Offshore Wind Auction to Boost 2030 Capacity
UK Seeks Steel Alliance with EU and US to Counter China’s Over-Capacity
UK Struggles to Balance China as Both Strategic Threat and Valued Trading Partner
Argentina’s Markets Surge as Milei’s Party Secures Major Win
British Journalist Sami Hamdi Detained by U.S. Authorities After Visa Revocation Amid Israel-Gaza Commentary
King Charles Unveils UK’s First LGBT+ Armed Forces Memorial at National Memorial Arboretum
At ninety-two and re-elected: Paul Biya secures eighth term in Cameroon amid unrest
Racist Incidents Against UK Nurses Surge by 55%
UK Chancellor Rachel Reeves Cites Shared Concerns With Trump Administration as Foundation for Early US-UK Trade Deal
Essentra plc: A Closer Look at a UK ‘Penny Stock’ Opportunity Amid Market Weakness
U.S. and China Near Deal to Avert Rare-Earth Export Controls Ahead of Trump-Xi Summit
Justin time: Justin Herbert Shields Madison Beer with Impressive Reflex at Lakers Game
Russia’s President Putin Declares Burevestnik Nuclear Cruise Missile Ready for Deployment
Giuffre’s Memoir Alleges Maxwell Claimed Sexual Act with Clooney
House Republicans Move to Strip NYC Mayoral Front-Runner Zohran Mamdani of U.S. Citizenship
Record-High Spoiled Ballots Signal Voter Discontent in Ireland’s 2025 Presidential Election
Philippines’ Taal Volcano Erupts Overnight with 2.4 km Ash Plume
Albania’s Virtual AI 'Minister' Diella Set to 'Birth' Eighty-Three Digital Assistants for MPs
Tesla Unveils Vision for Optimus V3 as ‘Biggest Product of All Time’, Including Surgical Capabilities
Francis Ford Coppola Auctions Luxury Watches After Self-Financed Film Flop
Convicted Sex Offender Mistakenly Freed by UK Prison Service Arrested in London
United States and China Begin Constructive Trade Negotiations Ahead of Trump–Xi Summit
U.S. Treasury Sanctions Colombia’s President Gustavo Petro over Drug-Trafficking Allegations
Miss USA Crowns Nebraska’s Audrey Eckert Amid Leadership Overhaul
‘I Am Not Done’: Kamala Harris Signals Possible 2028 White House Run
NBA Faces Integrity Crisis After Mass Arrests in Gambling Scandal
Swift Heist at the Louvre Sees Eight French Crown Jewels Stolen in Under Seven Minutes
U.S. Halts Trade Talks with Canada After Ontario Ad Using Reagan Voice Triggers Diplomatic Fallout
Microsoft AI CEO: ‘We’re making an AI that you can trust your kids to use’ — but can Microsoft rebuild its own trust before fixing the industry’s?
×