Citi Establishes Clearing and Settlement with New Beijing Stock Exchange

Citi China has established the clearing and settlement route with China Securities Depository and Clearing Corp’s (CSDCC) for the new Beijing Stock Exchange and the National Equities Exchange and Quotation (NEEQ).  In September last year, Chinese President Xi Jinping announced plans for the creation of a new bourse in Beijing, making it the third stock exchange on the Chinese mainland after the Shanghai Stock Exchange and the Shenzhen Stock Exchange.  The new Beijing Stock Exchange is fully owned by the Beijing-based NEEQ, an existing platform dealing in over-the-counter trading of smaller companies typically before they list on a stock exchange. It is expected that many of the top-tier companies traded on NEEQ will migrate to the Beijing Stock Exchange. The Beijing Stock Exchange will focus on innovation-oriented small and medium-sized enterprises (SMEs) which may have struggled to access financing compared with their larger counterparts. The new exchange will provide these SMEs with an increased pool of investor capital to support their growth ambitions.