Editing by Greg Gao

The much-anticipated Beijing Stock Exchange officially opened on November 15, with stocks of 81 SMEs (small and medium-sized enterprises) being traded. Among them, LINTON Technologies Group(连城数控) and Highbroad Advanced Material(翰博高新) are from the semiconductors and 11 from other high-tech industries.

According to statistics from financial information company Wind, the 81 companies have issued a total of 1.810 billion shares and have raised RMB17.864 billion($2.8 billion) on November 15. On average, each company has raised RMB 220 million($34.45 million), and the 81 companies have an average price-earnings ratio of 24.84.

Beijing Stock Exchange is the third one in the Chinese mainland. The other two are Shanghai Stock Exchange and Shenzhen Stock Exchange. The new board focuses on innovation-oriented SMEs to boost China's strategic high-tech industries and provide a much-needed injection of capital in SMEs.

Liu Menglin, an analyst at asset management firm Dongguan Securities, told JW Insights that China’s domestic substitution efforts in the semiconductor fields continue to advance. With the gradual increase of the production capacity of major domestic manufacturers, their global market share in those key areas will continue to increase in the future.

LINTON Technologies is a crystal material and processing equipment supplier with strong technology resources and has focused on photovoltaic and semiconductor fields for more than ten years. Pang Junwen, an analyst from the Guotai Junan Securities, pointed out that LINTON Technologies is already the world's leading photovoltaic and semiconductor equipment manufacturer. It would greatly benefit from expanding its current monocrystalline silicon wafer production capacity, delivering a stronger financial performance.

Highbroad Advanced Material is a well-known one-stop integrated solution provider of backlight display modules, an important component of semiconductor display panels. The company enjoys a favorable market prospect in the LCD panel market, in which China's LCD panel production capacity is expected to reach over 50% of the global one.

The factors that will benefit the company include the expansion of LCD panel applications, more smart home and the Internet of Things devices, and the opportunities brought by the migration of LCDs to China with the exit of South Korean counterparts from the sector.

JW Insights' senior analyst Ding Kai believed more semiconductor companies would have chances to get listed on Beijing Stock Exchange in the future, thanks to more stepped-up investment in the semiconductor industry and the new efforts to seek carbon neutrality goal. 

Xu Ming, chairman of the Beijing Stock Exchange, said that the vitality of the Beijing Stock Exchange lies in its being geared toward innovation-oriented SMEs in a different positioning from the Shanghai and Shenzhen stock exchanges. It will focus especially on those SMEs with“specialization, refinement, characteristics and novelty" – a new buzzword in the Chinese business community - referring to specialization in industry and product, refined business management, unique product function and market positioning and, as well as business and technological innovation.

The establishment of the Beijing Stock Exchange and the Shanghai Stock Exchange, Shenzhen Stock Exchange will form a powerful synergy for the capital market and empower SMEs to innovate, said another analyst.