Photo taken on June 29, 2016 showed the company staffs of Beijing Expert Aviation-Technology Co., Ltd., which was listed on China's National Equities Exchange and Quotations (NEEQ), better known as the "new third board" on the same day. (Photo by Xing Guangli/Xinhua)
BEIJING, Sept. 3 (Xinhua) -- China Securities Regulatory Commission (CSRC), the country's securities watchdog, announced Thursday that companies to be listed on the planned Beijing stock exchange will come from those listed on the innovation tier of China's National Equities Exchange and Quotations (NEEQ), better known as the "new third board", reported Xinhua-run Xinhua Finance.
CSRC made the statement on late Thursday after China announced the decision to set up the Beijing stock exchange and build it into a primary platform serving innovation-oriented small- and medium-sized enterprises (SMEs).
CSRC said that it will replicate various basic rules of the NEEQ select tier, maintain the tier by tier market structure from NEEQ base tier to NEEQ innovation tier and then to Beijing securities exchange and pilot registration-based securities issuance to establish the Beijing stock exchange.
Currently, NEEQ has three tiers of listed firms, base tier, innovation tier and select tier. Generally speaking, companies listed on select tier are larger in size and more competitive than those listed on the innovation tier, with the base tier as the elementary tier among the three.
CSRC vowed to adhere to differentiated development and interconnectivity with the stock exchanges in Shanghai and Shenzhen and regional equities markets as well.
It aims to make up for the shortcomings in developing inclusive finance through China's multi-layer capital market by founding a set of basic rules that adapt to the characteristics of innovative SMEs and include offering and listing, transaction, delisting, continuous regulation and supervision, and eligibility management of investors. (Edited by Duan Jing with Xinhua Silk Road, firstname.lastname@example.org)