A new board for innovative small- and medium-sized enterprises (SMEs) started trading in Beijing on Thursday, with 50 firms included in the first batch. The board, which is operated by the Beijing Equity Trading Center, is part of the city's efforts to leverage the regional equity market to further facilitate listing channels for innovative SMEs.

Among these 50 firms, 78% are enterprises that use special and sophisticated technologies to produce novel and unique products, and 5% are classified as “little giant” enterprises with high growth potential, advanced technology and a strong market competitive edge. More than 95% of these enterprises are private SMEs, and most have core technologies and scientific research achievements with independent intellectual property rights.

Jiang Guangzhi, director of the Beijing Municipal Bureau of Economy and Information Technology, said that the opening of the new board is a major step forward in supporting the development of innovative SMEs in Beijing, and that the city will continue introducing policies to support these firms.

According to an official at the Beijing Equity Trading Center, the board will provide these firms with a much-needed platform to raise capital and grow their businesses. The number of firms listed on the new board is expected to quickly exceed 100 and reach 200 by the end of 2023.

The new board will also offer a variety of other services to its listed firms. Cheng Jiuyan, chairman and general manager of the Beijing Equity Trading Center, said that the board will work to improve the basic services and optimize financing services and capital operation.

There are roughly 100,000 enterprises that use special and sophisticated technologies to produce novel and unique products nationwide, of which around 20% can trade on the Beijing, Shanghai and Shenzhen exchanges and the national stock transfer system. The other 80% still require a private market that provides incubation, policy, financing and guidance, which are tasks the new board will undertake.