Beijing Stock Exchange Sees Positive Trading Data in First Week After “19 Deep Reforms”
The Beijing Stock Exchange has experienced significant trading activity and a restorative upward trend in the first week following the release of the “19 Deep Reforms”. According to data released by the exchange, the Beijing Stock Exchange 50 Index rose by 1.81% cumulatively, with an average daily turnover of 1.986 billion yuan, a month-on-month increase of 45.83%. Additionally, excluding new stocks listed in September, a total of 7 North Exchange stocks hit record highs this week.
The release of the “19 Deep Reforms” and the entry of new investors has stimulated market growth and resulted in the rise of North Exchange stock prices. Several stocks, including Jinhao Medical, Audiway, and Wuxin Tunnel Equipment, saw weekly increases of over 16%. Furthermore, more than 170,000 new accounts were opened on the Beijing Stock Exchange this week, surpassing expectations. The new regulations for opening accounts on the North Exchange have eliminated certain requirements, leading to increased interest from investors.
Market participants predict that the release of the “19 Deep Reforms” will attract millions of new investors to the Beijing Stock Exchange. Wang Li, deputy general manager of the exchange, stated that the reforms will facilitate investor account openings and allow for at least 4 million incremental investors. Wang Li also mentioned the introduction of arrangements to allow private equity secondary market purchases and the entry of guiding institutions, which will further diversify the types of investors.
According to analysts, the Beijing Stock Exchange reached a historical valuation low in August, but with the release of the “Opinions on High-Quality Construction of the Beijing Stock Exchange” and the subsequent reforms, the market is expected to be repaired. In the short term, experts recommend focusing on consumer sectors such as automobiles, food and beverages, and computers. In the long term, low-valuation sectors such as communications, basic chemicals, and power equipment are recommended.
Zhou Yunnan, a senior NEEQ commentator, believes that the market bottom of the Beijing Stock Exchange is most likely on August 25 when the North Securities 50 Index hit a new low. However, the true market bottom will depend on the implementation of the “19 Deep Reforms”.
The Beijing Stock Exchange has been actively engaging with various stakeholders to communicate the background, significance, and main measures of the reforms. Leaders of the exchange have also shared their perspectives on the in-depth reform of the Beijing Stock Exchange. Sui Qiang, general manager of the Shanghai and Beijing Stock Exchange, stated that the reform is comprehensive and exceeds expectations. He believes that this reform will provide strategic opportunities for companies to go public and that the Beijing Stock Exchange will enter a new phase of high-quality construction.
The release of the “Opinions” outlines the mid-term and long-term goals for the Beijing Stock Exchange and proposes targeted measures for achieving these goals. Analysts anticipate rapid and steady development for the exchange with the implementation of the reforms.
Overall, the first week following the release of the “19 Deep Reforms” has shown positive results for the Beijing Stock Exchange, with increased trading activity and investor interest. The reforms are expected to drive further growth and enhance the market’s attractiveness.