Beijing Stock Exchange: faster listing approvals, wilder stock swings among features as bourse prepares for mid-November launch
- China has finalised frameworks on fundraising, corporate conducts and disclosure for new exchange, with effect from November 15
- Faster listing approvals and wilder daily stock swings are among key features of the nation’s third official bourse
The China Securities Regulatory Commission (CSRC) released about 10 sets of rules for the proposed bourse over the weekend, according to a statement on its website. They take effect on November 15, which is speculated as the launch date for the nation’s third official bourse in China’s US$13.5 trillion capital market.
“This is a key step in the capital market reform, by further invigorating market activities and better serving quality growth of the economy,” said Ren Lang, an analyst at Kaiyuan Securities.
Among the highlights, the new exchange will make a decision on listing applications within two months, compared with three months for the Star Market in Shanghai. It will also tolerate a wilder swing in trading, given the 30 per cent daily cap on either side of stock prices.
This compared with a 20 per cent cap on the Star Market in Shanghai and 10 per cent cap for main board companies on the Shanghai and Shenzhen exchanges.
In other rules, companies are barred from making stock offerings if they fail to disclose their annual reports within three years before applying for listings. Sponsors will be held accountable for three years for the candidates they underwrite.