Citi establishes clearing and settlement facility for Beijing Stock Exchange

Citi China has established links with the China Securities Depository and Clearing Corporation Beijing Branch to provide clearing and settlement services for the new Beijing Stock Exchange (BSE) and National Equities Exchange and Quotation Company (NEEQ).

In doing so, Citi says that it has become one of the first international banks to develop clearing and settlement links for the new stock exchange and to become fully established to support trading for Qualified Foreign Institutional Investors (QFIIs).

China announced plans in September 2021 to launch a new stock exchange in Beijing, creating the third stock exchange on the mainland alongside the Shanghai Stock Exchange and the Shenzen Stock Exchange.

The BSE is fully owned by NEEQ, a Beijing-based execution venue providing over-the-counter trading in smaller companies, typically before they list on other exchanges.

The BSE will concentrate on innovation-oriented small and mid-sized enterprises (SMEs), strengthening the capital-raising channels available to these mid-tier companies. It is expected that many companies currently trading on NEEQ will migrate onto the BSE.