China has announced plans to set up a third stock exchange to serve small and medium-sized businesses.
Mainland China currently has two major markets based in the Shanghai financial hub and the southern city of Shenzhen. The regulator said that the registration system for the exchange would be like Shanghai’s STAR market, which is seen as China’s answer to the technology-heavy Nasdaq platform in the US.
In recent months, Chinese authorities have announced a series of measures that have had a major impact on large parts of the country’s private sector – from tech giants and tutoring firms to music streaming platforms and TV companies. Along with a huge swathe of tough new measures imposed on companies, the Chinese authorities have intensified their oversight of firms with share listings in the US.