Beijing Stock Exchange Sets Investor Capital Requirements

By Fran Wang
Fran Wang
Fran Wang
September 21, 2021 Updated: September 21, 2021

China’s third, upcoming stock exchange will require minimum capital requirements on certain investors. Individual investors must have 500,000 yuan ($77,400) of assets in their accounts to trade on the Beijing Stock Exchange, the planned exchange announced on Friday.

China will set up a third stock exchange in Beijing, which will be a primary platform for innovative small and medium-sized businesses, Chinese leader Xi Jinping said on Sept. 2.

Before qualifying to trade, individuals must have the minimum capital amount in their accounts on average throughout the 20 trading sessions, while institutional investors will not be subjected to the limitation, online regulations stated on Sept. 17.

Furthermore, individual investors need at least 24 months of trading experience.

Although China’s securities regulator has stated that the planned Beijing Stock Exchange will be based on the city’s existing New Third Board and complement the Shanghai and Shenzhen stock exchanges, some fear a rivalry for listing resources is inevitable.

“After all, it diverts capital away from Shanghai and Shenzhen markets,” noted Rock Jin, economist and CEO of investment adviser PopEton.

Reuters contributed to this report.

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