China has decided to set up a new stock exchange in its capital, Beijing, to serve innovation-oriented and technology-based small and medium enterprises (SMEs). As China currently has stock exchanges in Shanghai and Shenzhen, this new Beijing bourse would be the third one in the Communist nation, and it will provide a complementary development path for SME financing. It is also expected to foster a healthy market environment for innovation and entrepreneurship. Furthermore, the creation of the Beijing stock exchange will open up a new and important venue for attracting public investments directly into innovative and technology-based SMEs.
