China wants to cut wealth gap with new stock exchange
Shares of 10 newly-launched IPOs surged on Monday as trading on China’s third mainland stock exchange kicked into action.
A total of 81 stocks started trading at the debut of the government-endorsed Beijing Stock Exchange, intended to serve small and medium-sized businesses (SMEs).
The companies listed are mostly from the software, pharmaceutical, and high-end manufacturing sectors.
Ten companies that recently went public saw their stocks jump six-fold. The other 71 firms, added to the new exchange from Beijing’s over-the-counter New Third Board, showed mixed results.
Overall, more than 4 million investors have registered to trade on Beijing’s new stock exchange, Reuters reports.
The launch of the new exchange is the latest step in China’s capital market reforms, aiming to cut wealth inequality in the country.
“It’s significant as it will enhance multi-layered capital market, improve financing system for SMEs and drive innovation and upgrade China’s economy,” Yi Huiman, the chairman of China’s Securities Regulatory Commission (CSRC), said at the opening ceremony on Monday.
The Beijing exchange is China’s third mainland stock exchange, in addition to those operating in Shanghai and Shenzhen, which traditionally host firms with bigger market capitalizations.
For more stories on economy & finance visit RT's business section
