A new Chinese stock exchange started trading in the capital city of Beijing on Monday, with the first batch of 81 companies debuting on the bourse.
The launch of the Beijing Stock Exchange (BSE) comes a few months after China announced the plan for setting up a new stock exchange to address the long-standing financing conundrum of small and medium-sized enterprises (SMEs), Xinhua news agency reported.
The Chinese media said that the companies listed on the newly-established BSE include 10 that were newly approved and 71 that were transferred from the selected tier of the country's National Equities Exchange and Quotations, also known as the "new third board".
As of 10:20 am, shares of all the 10 newly-listed companies had triggered temporary suspension twice as their prices jumped over 60 percent. These shares continued rallying after trading resumed, with the highest surging by over 500 percent at some point, Xinhua reported.
The local media said the stock exchange doesn't limit the price change of the listed companies on the first trading day. However, trading will be suspended for 10 minutes when stock prices fluctuate by more than 30 per cent and over 60 per cent.
"It is also of vital importance in creating a multi-level capital market, improving financial support for SMEs, as well as promoting innovation-driven development, and economic transformation and upgrading," said Yi Huiman, chairman of the China Securities Regulatory Commission, at the launching ceremony.
( With inputs from ANI )
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