At the Annual Conference of Financial Street Forum 2020 held on October 23, China Securities Regulatory Commission spokesperson Gao Li said that the Party Central Committee and the State Council attach great importance to the development of the capital of China, and have made major decisions and plans on deepening Beijing's new round of comprehensive pilot schemes for further opening up the service industry, building a national integrated demonstration zone for greater openness in the service industry and the China (Beijing) Pilot Free Trade Zone. The China Securities Regulatory Commission is conscientiously implementing the above decisions. It has held several meetings to make policies and arrangements to support the development of Beijing's "Two Zones", specifying more than 10 specific measures in 5 areas to enable the capital market to better serve Beijing's high-quality economic development.

First, the National Equities Exchange and Quotations (NEEQ) reform has achieved expected results. Since the end of last year, the China Securities Regulatory Commission has launched a new round of NEEQ reforms, including a series of innovative measures such as launching the NEEQ Select tier, introducing a public offering system, optimizing investor suitability arrangements, and establishing a transfer listing system to support public funds' compliance with laws and regulations when making investment in the NEEQ Select tier stocks. The NEEQ Select tier has been operating smoothly since its launch on July 27. Overall we have seen a further improved fundamental system of NEEQ, with more effective financing and transaction functions, better service for the small and medium-sized enterprises and enhanced market vitality.

The second is to support Beijing in improving its factor market system. The Overall Plan for the China (Beijing) Pilot Free Trade Zone clearly proposes to explore reform measures such as the development of green bond and equity investment and financing business, and the establishment of the Beijing Intellectual Property Trading Center. The China Securities Regulatory Commission is actively advancing the above efforts. At the moment, China Beijing Environmental Exchange has been renamed as Beijing Green Exchange and relocated to Tongzhou, Beijing's sub-center. Beijing Intellectual Property Exchange Center, operated by China Technology Property Exchange, is cooperating with Shanghai and Shenzhen Stock Exchanges to develop securities business for intellectual property. Meanwhile, the China Securities Regulatory Commission is conscientiously implementing the State Council's demand on deepening Beijing's new round of comprehensive pilot schemes for further opening up the service industry. Based on the Beijing Equity Exchange Center and under the current framework of private equity fund laws and regulations, it supports Beijing to build a private equity transfer platform and expand private equity and venture capital exit channels. Studies and researches of relevant plans are still in progress.

The third is to encourage and support the innovative development of Beijing's securities, fund and futures industries. Beijing is one of the main hubs of the capital market services with outstanding geographical advantages. It witnessed the early development, diverse business formats and a wide range of businesses of various industry institutions. Since the beginning of this year, the China Securities Regulatory Commission has approved the registration of six securities and fund management institutions in Beijing, including two fund management companies, three foreign-owned securities companies, and one fund sales agency. As of the end of September this year, there were 377 listed companies in Beijing, with a total market value of 14.78 CNY trillion, accounting for 20.5 percent of the total market value of A-share market, and 1099 companies listed on the NEEQ. From January to September, the total volume of direct financing of enterprises in Beijing was CNY 824.4 billion, a year-on-year increase of 5.7 percent; there are 70 corporate securities, fund and futures management institutions, 4,343 private fund managers with assets under management of CNY 3.47 trillion, and 22 accounting firms engaging in securities services in Beijing, all of which rank among the top in the country.

(Note: Content source is from China Securities Journal)