Group 1 - The report highlights the positive signals from the speeches at the 2025 Financial Street Forum regarding the construction of the Beijing Stock Exchange (BSE) and the New Third Board market [3] - The introduction of the North Exchange 50 ETF is expected to bring in approximately 16.1 billion yuan in incremental funds, with a comparison to the successful launch of the Sci-Tech 50 ETF [3] - The report emphasizes the importance of ETFs in enhancing market liquidity, with the Sci-Tech 50 ETF accounting for an average of 15.4% of total trading volume since its launch [3][4] Group 2 - The report suggests promoting long-term capital inflow by establishing more public fund products focused on small and medium-sized stocks, with an estimated 1 billion yuan in incremental funds awaiting entry into the market [3] - The establishment of specialized indices for the BSE is anticipated to generate around 5 billion yuan in additional funds, with several thematic public offerings expected to open for subscription [3] - The report indicates that the BSE will maintain a regular issuance rhythm, with an expectation of one new listing per week, which could provide investment opportunities in the new stock market [3] Group 3 - The report discusses the optimization of the listing standards for the BSE, which may open pathways for unprofitable companies to list, thus enhancing investment opportunities [3] - It highlights the potential for mergers and acquisitions as a growth path for small and medium enterprises, suggesting that the BSE could see increased activity in this area [3] - The report also mentions the need for improved trading mechanisms and the enhancement of the bond market product system at the BSE [3]

Investment Rating - The report maintains an "Outperform" rating for the industry [5] Core Insights - The North Exchange's stock trading activity remains active, with a total of 277 listed companies and a total market capitalization of 868.79 billion yuan as of September 30, 2025 [11][10] - The North Exchange 50 index has a PE-TTM of 50.90 times, ranking in the 88.25th percentile over the past two years, while the PB-MRQ is 13.18 times, in the 95.46th percentile [24][25] - The report highlights a mixed performance across industries, with the only rising sector being construction materials, while defense, agriculture, social services, food and beverage, and telecommunications sectors saw declines [32][29] Summary by Sections Market Overview - The North Exchange's trading volume for September was 26.028 billion shares, with a transaction value of 615.638 billion yuan, showing a 0.2% increase in volume but a 4.1% decrease in value compared to the previous month [10][15] - The average daily margin balance reached 7.673 billion yuan, an increase of 11.28% month-on-month, with peak margin balances nearing 8 billion yuan [21][21] Valuation - As of September 30, 2025, the North Exchange 50 index's PE-TTM is 50.90 times, and the PB-MRQ is 13.18 times, indicating high valuation levels compared to historical data [24][25] - The highest median PE among industries is in light manufacturing at 104 times, followed by computer and construction materials at 98 and 88 times respectively [25][28] Industry Performance - The North Exchange's dual indices showed a downward trend in September, with the specialized index down 4.44% and the North Exchange 50 down 2.90% [29][30] - The only sector that saw an increase was construction materials, while significant declines were noted in defense, agriculture, social services, food and beverage, and telecommunications [32][29] New Listings - Three new companies were listed this month: Sanxie Electric (920100.BJ), Jinhua New Materials (920015.BJ), and Shichang Co., Ltd. (920022.BJ) [11][3] - The total number of listed companies on the North Exchange is now 277, with a total market capitalization of 868.79 billion yuan [11][10]

Core Viewpoint - The Beijing Stock Exchange (BSE) will fully implement the "920" new code for existing listed companies starting from October 9, 2025, enhancing the identification and recognition of companies listed on the exchange [1][8]. Group 1: Implementation Details - The transition to the "920" code is part of a phased approach, with preparations having been underway since November 17, 2023, and the first phase involving new listings starting from April 22, 2024 [5][6]. - The BSE has conducted multiple network tests to ensure readiness for the code switch, which is now confirmed for October 9, 2025 [7]. Group 2: Benefits of the New Code - The introduction of the "920" code aims to eliminate confusion caused by the previous codes from the New Third Board, thereby improving the recognition of BSE-listed companies and differentiating them from New Third Board entities [8][9]. - The unified "920" code is expected to strengthen the BSE's identity as a platform for innovative small and medium-sized enterprises, potentially attracting more quality companies to the exchange [1][9]. Group 3: Market Impact - The transition to the "920" code is seen as a significant step in establishing the BSE's market position, facilitating a shift from niche to mainstream trading, and enhancing brand recognition [9]. - The continuity of the identity of listed companies and investor rights will be maintained during the transition, ensuring a smooth operational process for market participants [9].

Core Viewpoint - The Beijing Stock Exchange (BSE) is set to officially switch all existing stock codes to the new "920" code segment starting from October 9, 2025, marking a significant step in the market's development and enhancing the identification of listed companies [1][2]. Group 1: Code Transition Details - The transition to the "920" code will unify trading orders, market inquiries, and related business operations for existing stocks on the BSE, ensuring a smooth transition for investors [1]. - The code switch has been in preparation for nearly two years, with a phased approach initiated by the China Securities Regulatory Commission (CSRC) in September 2023 [1][2]. - The BSE began using the "920" code for newly listed companies on April 22, 2024, and the preparation for existing companies commenced in December of the same year [2]. Group 2: Market Impact and Analysis - The introduction of the "920" code is expected to enhance the recognition and identity of BSE-listed companies, fostering a stronger market positioning for innovative small and medium-sized enterprises [4]. - Analysts believe that the previous use of codes from the New Third Board may have caused confusion among investors regarding the nature of BSE-listed companies; the new code aims to eliminate this ambiguity [4]. - The transition to the "920" code is seen as a crucial move for the BSE to establish itself as a distinct market, potentially attracting more investors and differentiating itself from the Shanghai and Shenzhen markets [4]. Group 3: Operational Readiness - The BSE has assured that the continuity of the identity of listed companies, investor rights, and related business operations will remain unaffected post-code switch [5]. - Market institutions, including brokerages, have completed the necessary technical upgrades and testing to ensure stable and continuous service for investors during the transition [5].

Group 1 - The Beijing Stock Exchange (BSE) has expanded its listed companies to 85 with the official listing of Weimao Electronics, and the majority of A-shares showed positive performance on the same day [1] - Since its opening, the BSE has seen an average daily trading volume of 1.9 billion yuan, which is nearly four times higher than the previous selection layer, indicating increased trading activity across various layers [1] - The number of qualified investors has reached nearly 4.9 million, nearly double that of the selection layer, with various institutional investors actively participating [1] Group 2 - The BSE has three companies awaiting issuance and 347 companies expressing interest in listing, indicating a growing pipeline of potential listings [2] - The average first-day increase for newly listed companies on the BSE has exceeded 100%, with some companies experiencing significant gains, reflecting strong market interest [2] - The strategic placement of shares has seen increased participation from a diverse range of institutions, including insurance funds, indicating a broadening of investor base [2] Group 3 - The successful transfer of Guandian Defense from the BSE to the Sci-Tech Innovation Board highlights the BSE's role in facilitating the upward mobility of quality small and medium-sized enterprises [3] - As of the report date, 10 out of 85 listed companies on the BSE have released their 2021 earnings forecasts, with most showing positive growth, suggesting a healthy earnings outlook for the listed companies [3] - Market sentiment may experience pressure around the first quarter earnings reports, but the outlook remains optimistic with ongoing policy support and the entry of quality enterprises [3] Group 4 - The BSE and the National Equities Exchange and Quotations have jointly released a self-regulatory report aimed at improving the quality of listed companies and establishing a diversified delisting indicator system [4] - Future plans include the development of a BSE index and the promotion of mixed trading, which will enhance trading tools and strategies while reducing participation costs [4]