Daily US Times: China announced its plan to set up a third stock exchange which will serve small and medium-sized businesses.
During a speech to the International Fair for Trade in Services, President Xi Jinping said the new stock exchange will be in the capital Beijing.
Mainland China currently has two major share markets based in the southern city of Shenzhen and the Shanghai financial hub.
While President Xi didn’t elaborate on the plan, the China Securities Regulatory Commission (CSRC) released a statement shortly after his speech that said its leadership was “excited” at the prospect.
The CSRC added: “Small and medium-sized enterprises can do great things.”
The regulator said that the registration system for the new stock exchange would be similar to Shanghai’s STAR market, which is seen as China’s answer to the technology-heavy Nasdaq platform in the US.
The move comes as Chinese companies are coming under intense scrutiny and pressure at home and in the United States.
Chinese authorities have announced a series of measures in recent months that have had a major impact on large parts of the country’s private sector – from tutoring firms to tech giants to TV companies and music streaming platforms.
Along with a huge swathe of tough new rules imposed on companies Chinese authorities have intensified their oversight of firms with share listings in the US.
Last week, Chinese electric car maker BYD’s had to cancel a plan to sell shares in its computer chip making unit, making it the latest share offering to be hit by China’s crackdown on businesses.