Core Viewpoint - The Beijing Stock Exchange (BSE) is enhancing its services for innovative small and medium-sized enterprises (SMEs) through reforms and improved institutional arrangements, aiming to create a new ecosystem that meets diverse financing needs [1] Group 1: Multi-layered Capital Market Development - The BSE and the New Third Board (NTB) will focus on differentiated positioning and functional synergy to better serve innovative SMEs, enhancing the adaptability of institutional mechanisms and product services [2] - The BSE will improve its listing mechanisms, utilizing the fourth set of listing standards for unprofitable companies, and optimize disclosure requirements to support technological innovation and traditional industry upgrades [2] - The NTB will enhance its role as a "nursery" for SMEs by optimizing access systems and improving tiered arrangements to stimulate market vitality and elevate the quality of listed companies [2] Group 2: Cultivating Patient Capital - A balanced market dynamic is essential for sustainable development, with a focus on cultivating patient capital to support innovative SMEs [3] - The BSE will prioritize enhancing the investment value of listed companies and will maintain a regular issuance and listing process while optimizing the new stock issuance system [3] - Efforts will be made to attract long-term capital through the establishment of special funds and by addressing bottlenecks in private equity fund operations [3] Group 3: High-Quality Regulatory Framework - The BSE is committed to high-quality regulation to promote the development of listed companies, focusing on standardization, innovation, returns, and accountability [4] - Strengthening information disclosure and internal controls will be prioritized to ensure compliance and enhance corporate governance [4] - The BSE will encourage companies to focus on core businesses and increase R&D investments while ensuring accountability for fraudulent activities [4] Group 4: Collaborative Innovation Support - The construction of a national innovation system requires collaboration among various stakeholders to support the financing of innovative SMEs [5] - The China Securities Regulatory Commission (CSRC) will enhance cooperation with various government departments to promote the formation of innovative capital and support high-quality SMEs [5] - Efforts will be made to deepen international cooperation and enhance the BSE's global presence, including partnerships with foreign regulatory bodies [5]

Core Insights - The Beijing Stock Exchange (BSE) has shown significant growth in its four years of operation, with 274 listed companies and a total market capitalization exceeding 900 billion yuan [2] - The BSE is increasingly attracting institutional investors, with over 9 million qualified investors participating, and monthly trading volume rising from approximately 20 billion yuan in 2022 to around 600 billion yuan currently [2] - The BSE aims to enhance its market recognition and sector identity through the upcoming "920 new code" switch [2] Group 1: Importance of Innovative SMEs - Innovative small and medium-sized enterprises (SMEs) are crucial for China's economy, yet they face multiple financing challenges due to their asset-light business models and the financial system's mismatch [3] - The establishment of the BSE has opened up capital market channels for SMEs to achieve technological breakthroughs and scale up, stimulating investment from venture capital and private equity funds [3] - Over 90% of companies listed on the BSE are high-tech, with more than half being national-level specialized "little giant" enterprises, indicating a strong clustering effect for innovative SMEs [3] Group 2: Market Function and Institutional Improvements - The BSE is continuously improving its foundational market systems, including listing standards that accommodate both profitable and non-profitable companies, thus providing opportunities for SMEs at different development stages [4] - Recent revisions to restructuring rules have introduced a "small and fast" review mechanism, enhancing the efficiency of mergers and acquisitions for listed companies [4] - The increase in new stock profitability has attracted more funds, boosting market activity and establishing a positive ecosystem for innovative SMEs [4] Group 3: Future Challenges and Opportunities - Despite significant trading volume growth, some stocks on the BSE experience low trading activity, indicating liquidity gaps that need to be addressed [5] - The BSE may need to expedite the introduction of index funds and other tools to attract more institutional investment and enhance market liquidity [5] - The valuation system requires improvement, and a more diverse investor structure could lead to more reasonable company valuations [5]