Capital ramps up backing for SME innovations

At a parallel forum during this year's annual conference of the Financial Street Forum on Friday, industry experts shared insights into how to promote the high-quality development of the capital market and support small and medium-sized enterprises in pursuing specialization and sophistication to serve the development of new quality productive forces.

Liang Zhifeng, head of the SME Bureau at the Ministry of Industry and Information Technology, said at the parallel forum organized by the Beijing Stock Exchange that the MIIT would sign strategic cooperation agreements with the BSE and the National Equities Exchange and Quotations to enhance the depth and breadth of services for specialized and innovative SMEs.

The ministry will also cooperate with the China Securities Regulatory Commission to launch a dedicated trading board for specialized and sophisticated SMEs on the third batch of local equity markets, providing them with more localized comprehensive financial services, according to Liang.

The CSRC announced 17 local equity markets in two groups in 2023, involving more than 9,000 businesses listed on the trading board or in the pipeline. The BSE was among the earliest nine local equity markets.

Liang also revealed at the forum that the MIIT will introduce a development evaluation index for specialized and innovative SMEs and explore its applications in financial scenarios to achieve precise financing through accurate profiling.

Shang Qingjun, deputy director-general of the Department of Public Company Supervision at the CSRC, said that the commission will continue improving the coordination of investment and financing services of capital markets, promote the high-quality development of the BSE and the New Third Board, enhance support and service for innovative SMEs, and better serve the overall construction of Chinese modernization.

Zhang Wen, president of Beijing Financial Court, said that since its inception, the court has been striving to provide comprehensive judicial services for SMEs in pursuit of a path of specialization and innovation throughout their life cycle.

In addition, the court has strengthened coordination and collaboration with the BSE to jointly build a new development ecosystem for specialized and innovative businesses.

Chairman of Bank of Beijing Huo Xuewen said SMEs are a target client group of the bank. To date, the bank has provided support for more than 17,000 specialized and sophisticated SMEs and the figure is projected to surpass 20,000 by the end of this year.

Zhang Qicheng, chairman of Caitong Securities from Zhejiang province, which is bustling with private businesses, said that Caitong is "optimistic about the Chinese economy, bullish on the capital market, and confident in high-quality development".

The optimism about the Chinese economy stems from the macro policy orientation, the strength of policy transmission, and the confidence in micro development. Being bullish on the capital market comes from the strong support of the national industry regulatory authorities, the proactive response from local Party committees and governments, and the positive expectations of market entities and investors, he said.

Li Xiaowei, deputy general manager of Fullgoal Fund Management Company, said public funds continue to pay attention to and participate in the BSE market, providing investors with more high-quality investment targets on one hand, and also supporting the development of specialized and sophisticated SMEs.

Fullgoal Fund will continue to participate in strategic placements, develop new products around the BSE, promote existing funds to invest in the BSE, and support its stable and healthy development, Li said.

She said she hopes that the BSE will continue to improve the public fund product system, introduce related derivative tools such as futures and options, enhance the variety of bonds, and further encourage and guide medium to long-term funds to invest in the BSE.

BSE Chairman Zhou Guihua said that with a solid foundation, the stock exchange in Beijing is committed to support technological innovation and has more to do to this end. It will strive to improve the issuance and listing mechanism, optimize financing as well as merger and acquisition operations, and enrich its product tool lineup to support high-quality enterprises representing the development direction of new quality productive forces, Zhou said.

The BSE works to create a conducive atmosphere that encourages innovation and allows for failure. It also seeks to enhance the precision of its services by improving the service system and content for SMEs' technological innovation and further promoting investment and financing connections, he added.

To date, there are 254 companies listed on the BSE. Of them, 123 are recognized as national specialized and sophisticated "little giant" businesses, accounting for 48.43 percent of the total.