Beijing Stock Exchange: Results of Two Years Operation, Challenges and Prospects

The establishment of the Beijing Stock Exchange (BSE) in November 2021 was due to a number of factors. First, a specialized channel for financing small and medium-sized businesses (SME) was needed. Second, it was the result of increased regulatory requirements for Chinese companies on the US stock market and their massive transition to domestic exchanges. Trends of the BSE indices often sharply contrast with those of the 2 major Chinese stock exchanges, which attract millions of retail investors to the BSE. Institutional investors show more interest in the new exchange as well. The access of foreign investors is regulated through licenses and quotas. The BSE initial market is vivid: IPOs were held all temporary suspension periods long. The exchange infrastructure and trading system are successfully developing and expanding. The market makers facility was introduced, margin trading was allowed, the bond market was formed. The BSE development plan provides for in 5–10 years it transforms into a full-fledged financial center by key indicators.