Beijing Stock Exchange publishes draft rules for trading and member management


Beijing Stock Exchange Photo: VCG

The Beijing Stock Exchange on Tuesday released the draft rules for trading and managing its members. This is one more step towards opening the third stock exchange on the A-share market just over two months after its announcement.

The draft rules that add to the 31 specific rules that provide guidance for IPOs, fundraising and mergers and acquisitions, corporate regulations, securities trading and membership management, among others , will take effect on Nov. 15, Beijing’s action announced late at night. statement on its website.

Companies that trade on the National Equities Exchange and Cotations (NEEQ), known as the New Third Board, will be transferred to the Beijing Stock Exchange with stock transactions subject to a 30% change limit on the first day. The closing price of the shares on their last trading day on the NEEQ will be the opening price of new listings on the stock exchange, according to the draft trading rules.

NEEQ brokers will still have to apply for membership if they plan to do business in the new market, according to the draft membership management rules.

The latest rules that follow a series of October 30 regulatory proposals for new Beijing stock listings and reviews of IPOs, refinancing and major asset reorganizations will take effect on November 15.

Tuesday’s announcement apparently fueled market expectations for the imminent launch of the new title when the rules take effect.

According to the statement, the Beijing Stock Exchange will issue more securities trading regulations on US Dollar and Yuan-denominated Qualified Foreign Institutional Investor (QFII) programs on Renminbi Qualified Foreign Institutional Investors (RQFII).

Beijing’s action is the subject of preparatory efforts, including business formation, investor education and membership acceptance, to lay the groundwork for a smooth launch and stable operation of the third addition to the A.

The new exchange, announced in early September at the China International Trade in Services Fair in Beijing, is built on the basis of the selection level of the new third board. Officially operational in 2013, the New Third Board is made up of the core, innovation and selection levels. The selection level was presented to the new third board in October 2019 as part of efforts to reshape the over-the-counter market where low trading volume and low market liquidity appeared to have dampened market appeal.

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