Refinitiv is the first international data vendor to carry Beijing Stock Exchange (BJSE) real-time pricing data. The BJSE was launched in 2021 to help small and medium-sized companies raise capital in China. This new trading data is in great demand from international financial firms, whose clients wish to invest in these potentially high-growth companies.
- Refinitiv worked closely with the BJSE on the complex preparations for the broader data distribution. Previously the trade data had only been available to domestic Chinese data vendors.
- Refinitiv successfully launched the BJSE data at the end of August 2022.
- Over the next few months, Refinitiv will be working with the BJSE to finalise its non-display usage policy, so that the data will be available on other solutions such as DataScope at a later stage.
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When the Beijing Stock Exchange commenced trading on 15 Nov 2021 with 81 listing companies, the international financial press was already speculating that this new venue had the potential to become China’s version of the US’s NASDAQ marketplace. NASDAQ – the world’s first electronic exchange – originally started by enabling small and mid-capitalisation company shares to trade.
Chinese leader Xi Jinping announced the new exchange in September 2021. He said the purpose of the BJSE is to support the growth of small and medium-sized businesses and expand China’s domestic capital markets. In particular, the exchange is expected to be home to technology and manufacturing companies seeking to raise capital.
The BJSE emerged out of the National Equities Exchange and Quotations (NEEQ), also known as New Third Board. This is an OTC market for innovative, start-up, high-growth, micro/small and medium-sized enterprises. The Select Tier – the top tier – of the NEEQ was upgraded to create the BJSE. The new market forms a second layer in the Chinese stock market, under Shanghai stock exchange and Shenzhen stock exchange.
The BJSE is off to a great start – as of September 2022, listings have grown to 106. Today, trading is limited to equities, but the exchange is planning to add convertible bonds and indices in the near future.
BJSE data demanded by international firms
International investors have long been keen on buying into China’s rapid economic development, and this remains true in 2022. In turn, China is keen to attract this capital. Over the past five years, Chinese policy reforms have created unprecedented access for overseas investors. As a result, global holdings of Chinese stocks and bonds grew by $150bn in 2021 to $1.1trn, according to Financial Times calculations.
Many of these international investors came to Refinitiv and expressed their desire to be able to obtain the BJSE data. It is early days for the exchange, so foreign institutional investors can trade on the BJSE through the Qualified Foreign Institutional Investor (QFII) system and the Renminbi Qualified Foreign Institutional Investor (RQFII) program – the BJSE is not connected to the Hong Kong Exchange or overseas exchanges yet.
A new friendship between the BJSE and Refinitiv
As a result of this strong interest from global investors, Refinitiv approached the BJSE about distributing the data internationally. This was a big step for the BJSE, and so Refinitiv supported the exchange by providing insights based on our long history of working with venues around the globe. For example, Refinitiv was able to help with commercial practice, examples of data displays, and in translating key industry terms. The market data industry has evolved very rapidly over the past few years, and so Refinitiv was able to provide the insights that the BJSE needed to be able to launch its data for international investors. A relationship of trust developed.
This strong partnership led to Refinitiv being the first international data vendor to distribute the BJSE data. This data is now available on Eikon, Workspace and Refinitiv Real-Time, and it should be available on other solutions, such as DataScope, once the BJSE finalises its non-display usage policy. Refinitiv is offering 3 seconds snapshot on L1 data and 5 levels of L2 MBP data, as well as delayed data.
Refinitiv has a long history of supporting capital markets development around the globe by facilitating international data distribution. Refinitiv recognises that this development is essential for the deepening and broadening of access to capital for companies of all sizes and industries – and particularly today, the technology industry. Looking ahead, Refinitiv is always keen to help tomorrow’s trading venues to widen access to their data, and as a result, their investor base.