(Yicai) Dec. 26 -- Leading brokerage China Securities is joining hands with two partners to establish a CNY500 million (USD70 million) fund that will mainly invest in stocks traded in Beijing.

Sixty percent of Beijing Jinjian Beijiao Fund’s resources will be allocated to high-quality companies listed on the two-year-old Beijing Stock Exchange, China Securities said yesterday. The rest will target emerging-industry startups intending to list on the Shanghai and Shenzhen stock markets. 

The Beijing-based brokerage and Beijing Financial Holdings Group will contribute 35 percent of the new fund’s capital, while Linkong Zhigu Enterprise Management will chip in 30 percent.

The Beijing Stock Exchange was established in September 2021 and is mainly geared to small and mid-sized companies seeking financing. So far it has 238 listed firms.

The new fund shows how market entities value the BSE, Yu Wei, an expert from a committee under the China Well-Off Society Association, told Yicai. More funds of different kinds are expected to target the BSE by various means in the future, Yu added.

The market is gradually attracting more attention after China’s top securities regulator revealed new measures in September to reform the BSE so as to improve its trading mechanism, widen diversity, and attract more investors.

The BSE 50 index [BJ: 899050], which tracks the performance of the 50 biggest stocks on the Beijing bourse, has jumped by nearly 40 percent since last month and closed up 1.4 percent at 1,047.24 today.

Editors: Dou Shicong, Emmi Laine