Beijing Stock Exchange. Photo: CFP

As the Beijing Stock Exchange (BSE) marks first anniversary on Tuesday, the third-born of the A-share market - designed as a major platform for innovative small and medium-sized enterprises (SMEs) - delivered a satisfactory report, with overall smooth operations and continuous improvements in services.

Experts said that the BSE plays an indispensable role in the nation's capital market, complementing the Shanghai Stock Exchange and the Shenzhen Stock Exchange with its inclusive stance on SMEs.

As of November 11, the exchange had 123 listed companies, of which SMEs accounted for 77 percent and private enterprises for 86 percent. More than 80 percent of companies were concentrated in strategic emerging industries and advanced manufacturing, China Media Group reported on Sunday, adding 49 companies are technologically advanced.

The BSE-listed companies used the funds they had raised to expand production and improve technology levels, gradually improving their R&D capabilities and core competitiveness, China Media Group reported, citing Fan Xiaoxin, vice chairman of the China Association of Small and Medium Enterprises.

Fan said that more than 70 percent of the raised funds have been used for capacity expansion and R&D center construction, and nearly 80 percent of the raised funds have been invested in sectors including green and low-carbon industries, digital economy, high-end equipment manufacturing and new materials.

In the first three quarters of 2022, BSE-listed companies generated 73.21 billion yuan ($10.38 billion) in operating income, up 33.25 percent year-on-year, per the report. Net profit reached 6.93 billion yuan, a year-on-year increase of 19.43 percent.

The marketization and inclusivity levels of the BSE for SMEs, especially in the high-tech sector, are higher than those of the Shanghai or Shenzhen stock exchanges, Dong Dengxin, director of the Finance and Securities Institute of the Wuhan University of Science and Technology, told the Global Times on Monday.

The BSE has a relatively lower threshold for companies seeking listings, providing development opportunities for SMEs with potential that may not meet the criteria for listing on the other two exchanges, Xi Junyang, a professor at the Shanghai University of Finance and Economics, said on Monday, adding that such an exchange can be an important supplement for the Shanghai and Shenzhen stock exchanges while promoting the development of a multi-faceted capital market.

For instance, Dong said that companies with a 200-million-yuan valuation can seek IPOs on the BSE, whereas the standard is 1 billion yuan for the other two stock exchanges.

Another major advantage for listing on the BSE is the efficiency and speed of the listing process. The average time from acceptance to registration is 145 days, with the shortest being only 72 days, said China Media Group.

The report said that the BSE has used the registration system since the opening day, and there are four sets of listing standards for enterprises to choose from, which allows for the inclusion of a wide range of enterprises.

Xi told the Global Times that although the sci-tech innovation board and the ChiNext board have also implemented the registration system, the listing times are relatively longer, whereas companies can go through the listing process efficiently with the BSE, and unqualified firms can make their way to the bourse through the National Equities Exchange and Quotation after cultivation.

The BSE revealed its detailed margin financing trading rules on November 11, aiming to further improve market liquidity and pricing efficiency. Xi noted that the liquidity and trading of the BSE are relatively weak, and the introduction of the mechanism will help boost market activity.

The bourse officially released the Beijing Stock Exchange 50 Index sample on November 4, which is expected to launch on November 21. Market authorization and the development of the index fund are progressing in an orderly manner, bjnews.com reported.

The BSE will continue promoting the progress of technical preparation, investor cultivation and other tasks, while working on the official launch of the margin trading and short-selling mechanism, said the report, adding that reforms such as the introduction of a market-making mechanism and the reduction of trading costs are now progressing.

Beijing welcomes qualified foreign institutional investors to actively participate in investment, stock underwriting and trading product design at the BSE, Li Wenhong, Beijing Municipal Bureau of Local Financial Regulation and Supervision, said in September, indicating follow-up efforts by the city government in giving a full play to the BSE's pivotal role in the construction of a more open capital market system.