The first test opening of the Beijing Stock Exchange has gone as planned, China’s media sources reported. No failures in its operation have been found.
China’s government announced the creation of a new exchange in early September 2021. Its first trial launch went as scheduled on September 25, the China Securities Journal broke the news.
The results and details of the testing are still unknown. The government officials, as well as the Beijing Stock Exchange representatives, have not responded to a request for comment. The test opening was meant to check the exchange's functions. The goal was to find out whether brokers would support their clients in obtaining and canceling the status of a qualified investor.
The second test opening is scheduled for October 9, 2021. Such tests are carried out to check whether the Beijing Stock Exchange is ready for the official launch. It remains unknown when the exchange will publicly open.
The New Third Board, China Securities Depository and Clearing, Shenzhen Securities Communication, the China Securities Index Company, as well as a number of investment funds and exchange and financial data providers, took part in the test launch of the Beijing Stock Exchange.
In early September, President Xi officially unveiled the project to the public. The new trading floor will target China’s small and medium-sized innovative companies. According to the rules, there will be no restrictions on price changes on the new stock exchange on the first trading day. At the same time, trading will be suspended for 10 minutes when the shares of any company soar by 30% or plunge by more than 60%. The capital of the Beijing Stock Exchange totals 1 billion yuan ($155 million).
