Trading on China’s SME-focused Beijing Stock Exchange began on November 15, when 81 companies saw their shares trading on the new bourse. Most were transferred from the “Select Tier” of Beijing’s over-the-counter New Third Board, but 10 have just conducted IPOs.

These firms come mainly from advanced manufacturing, high-tech, and strategic emerging industries. Their average spending on research and development tops 25 million yuan (US$4 million). The total value of all 71 companies on the exchange is 300 billion yuan. More than 4 million investors have opened accounts and over 100 securities firms have signed up. Ordinary investors should be cautious as companies in the growth stage remain a major investment risk.

On the first day of an IPO, if the stock price rises by 30 percent or drops by 60 percent, trading is suspended for 10 minutes. Thereafter daily prices movements will be controlled under 30 percent.

The new exchange complements existing bourses in Shanghai and Shenzhen. As most of them are small-cap stocks, they will make little difference to the main board market, Shanghai’s tech-focused STAR Market, and Shenzhen’s ChiNext Market.