China's securities regulator pledges more support to real economy

China's securities regulator has pledged more support to advance a "virtuous cycle" between the real economy and the capital market.

A view of Shenzhen City, east China's Guangdong Province, August 24, 2021. /CFP

China will further strengthen the role of market function in serving the real economy while guarding against capital idling and risk accumulation, said Yi Huiman, chairman of the China Securities Regulatory Commission, at the World Federation of Exchanges annual meeting on Tuesday in Shenzhen.

Facing multiple challenges including the pandemic, rising commodity prices and disrupted supply chains, small and medium-sized enterprises (SMEs) are having a hard time, and extending support to foster their development is a major task for global economic recovery, Yi noted.

He pledged efforts to deepen reforms of the New Third Board, set up the Beijing stock exchange and speed up fostering a full-chain institutional system for the capital market to serve the innovation and development of SMEs.

As part of the efforts to deepen reforms of the New Third Board, China recently announced the decision to set up the Beijing stock exchange.

Built upon the New Third Board, the Beijing bourse will host eligible companies traded on the equity exchange platform and pilot the registration-based IPO system.

(With input from Xinhua)