China to support listing of innovative SMEs on Beijing Stock Exchange, "new third board"

China will intensify its support for the listing of high-quality innovative small and medium-sized enterprises (SMEs) on the Beijing Stock Exchange and the "new third board," a financing platform designed for SMEs.

This initiative is outlined in a strategic cooperation agreement signed by the Beijing Stock Exchange, the Ministry of Industry and Information Technology (MIIT), and the National Equities Exchange and Quotations during the Annual Conference of Financial Street Forum 2024 on Sunday.

According to the agreement, the three parties will enhance their coordination and collaborate in areas such as institutional synergy, company cultivation and work coordination to form a cohesive force that promotes the development of these enterprises.

They also aim to assist the enterprises in effectively utilizing capital market tools like mergers and acquisitions, restructuring, and equity incentives to achieve high-quality development.

So far, China has cultivated about 141,000 innovative SMEs that use specialized, sophisticated technologies to produce novel or unique products, including 14,600 "little giant" firms, according to data from the MIIT.