(Yicai) Jan. 12 -- The Beijing Stock Exchange, which mainly serves small and medium-sized innovative companies, has attracted a large amount of investment since November last year, and more than 10 companies have received over CNY100 billion (USD14 billion) of funds apiece in initial public offering subscriptions, which are paid once the company has been given the greenlight to go public and before listing.  

Most of these funds are risk-averse capital and do not come from the secondary markets, so there is no impact on the liquidity of the Shanghai and Shenzhen main board stock markets, Securities Times reported today, citing Zhou Yunnan, founder of Beijing Nanshan Investment.

Smart transportation company Parking Cloud’s stock more than doubled on its debut on the Beijing bourse yesterday. It had amassed CNY201.3 billion (USD28.1 billion) of subscribed funds, which purchase securities at an agreed price prior to the issue date, a record for the stock exchange. By comparison, the daily turnover of the Shanghai and Shenzhen markets has been around CNY600 billion recently.

And agricultural firm Kangnong Seed, which will go public soon, has already bagged CNY174.7 billion in IPO subscriptions.

Companies that went public in Beijing in November 2023 saw their stock price double on average on the first day of trading, and those that went public in December logged an average 135.6 percent increase, said Zhu Haibin, an analyst at Kaiyuan Securities. And over the course of last year, the average opening price jumped 56.8 percent on the first day of trading.

The requirements for subscribing to new shares listing on the Beijing Stock Exchange are more relaxed than on the Shanghai and Shenzhen bourses, Zhou said. Investors are not required to hold any spot stocks on the Beijing Stock Exchange, they only need to open trading permissions on the exchange, which attracts many cost-sensitive funds to enter, he added.

There were 6.75 million qualified investors on the Beijing Stock Exchange as of the end of last year, an increase of 29 percent from the start of the year, and the number is still growing.

Editor: Kim Taylor