The Beijing Stock Exchange (BSE) is gaining traction among foreign-invested enterprises, marking a significant step in China's capital market internationalization. Recently, Suzhou Ovodan Foods Co., Ltd., a company with over 80% Danish ownership, announced plans to list on the BSE. While initially reported as the first foreign-controlled BSE-listed company, BSE officials clarified that Ovodan Foods would be the first with a non-Chinese foreign national as its actual controller.
Accelerated IPO Approvals Signal Market Vitality
The BSE has experienced a surge in IPO approvals, with:
- 10 companies passing review between November 21 and December 4, 2022
- 18 total approvals in November 2022 alone - a monthly record since the exchange's establishment
👉 Discover how BSE's innovative approach benefits global investors
Policy Support for Foreign Investment
China's regulatory framework actively encourages foreign participation:
- Equal Legal Status: BSE shares equivalent standing with Shanghai and Shenzhen exchanges
- No Policy Barriers: No legal restrictions on foreign-owned enterprises listing
- Financial Support: Six-ministry policy package (October 2022) explicitly backs foreign-funded manufacturing firms' financing through BSE listings
Four Pathways for Foreign Investors:
- QFII/RQFII investments with existing policy support
- Strategic Investments under foreign investor regulations
- Qualified Individuals including permanent residents and employed foreigners
- Employee Incentives for foreign core staff of listed companies
Market Development and Future Outlook
The BSE demonstrates:
- Robust foundational systems
- Growing clustering effect for innovative SMEs
- Increasing interest from foreign investors seeking diversified portfolios
Experts anticipate the exchange will:
- Attract more specialized "little giant" enterprises
- Facilitate increased long-term RMB asset allocation
- Accelerate China's capital market opening
FAQs
Q: Can wholly foreign-owned enterprises list on BSE?
A: Yes, provided they meet standard listing requirements including one year of NEEQ (New Third Board) listing.
Q: What advantages does BSE offer foreign investors?
A: Multiple access channels, policy support, and exposure to China's innovative SME sector.
Q: How does BSE compare to other Chinese exchanges for foreign companies?
A: While maintaining equal legal status, BSE specializes in serving innovative small and medium enterprises.
Q: Are there restrictions on foreign shareholding percentages?
A: No specific limitations exist beyond standard securities regulations.
Q: What types of foreign investors typically consider BSE listings?
A: Manufacturing-focused firms and investors seeking exposure to China's specialized SME sectors.