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China sets new campsite for tech listingsINTL

China sets new campsite for tech listings

What happens in China, remains listed in China — at least according to Xi’s financial baby, the Beijing Stock Exchange (BSE). The new bourse, first announced by President Xi in September, kicked off trading on Monday with 81 firms and 10 IPOs reaping massive gains and closing in on an average price increase of 200%.

BSE’s main aim is to provide easier funding support to small and medium (SME) tech companies — which is otherwise hard for the SMEs to get given that they may not have as many historic financial statements to receive lines of credit. In turn, funding entrepreneurs and high-tech companies will help enhance innovation and better position China’s influence as a prominent capital leader on the global technology scene.

why it matters

BSE’s aim to surpass the West in providing innovation and tech support means that small companies no longer have to worry about raising capital outside of China. Coupled with the new regulatory cybersecurity hurdles required for an overseas listing, looks like Chinese firms would now be happy to stay at home.