Beijing Stock Exchange to Improve the ‘Fast Track’ System for IPO

Financials Author: Hu Bi Editor: Yiru Qian Jun 24, 2022 04:57 PM (GMT+8)

The newly established stock exchange is another milestone in China’s capital market reform and development. It has entered a steady development stage with more and better plans to serve SMEs.

Beijing stock exchange

Beijing Stock Exchange (Chinese: 北交所) announced that it will further optimize the auditing mechanism, strengthen the internal coordination of listing, supervision and auditing. Besides, it aims to improve the "fast track" system for IPO, promote the in-depth integration of sponsorship team and supervision to facilitate the smooth and efficient listing process for eligible enteprises.

As of June 23, there are more than 310 auxiliary enterprises on the Beijing Stock Exchange and 77 enterprises under review. Moreover, there are more than 1,100 back-up enterprises in the new over-the-counter market, and more than 70% of them are in the innovation layer.

“This means that the Beijing Stock Exchange has entered a steady development stage,” Tian Lihui, director of Nankai University's Institute of Financial Development, said in an interview. The achievement is closely related to the three issuance assessment features of the stock exchange: precise inquiry, constant communication and transparent review process.

Moreover, the stock exchange aims to serve innovative small to medium enterprises (SMEs). Among one hundred listed companies, SMEs make up 76% of them. Besides, those that belong to emerging markets or advanced manufacturing industries account for more than 80% of the total. They cover a wide range of businesses including industrial materials, information technology, medicine and health.

Also, it is worth noting that the overall quality of operation remains solid. These one hundred companies achieved a total revenue of CNY 70.4 billion in 2021, up 31.04% year-on-year. Majority of the companies are earning money, with 99% profitability and nearly half of them have a net profit of more than CNY 50 million.