September 2 marks the fifth anniversary of the announcement of the Beijing Stock Exchange, with the BSE 50 Index surging over 4% intraday in a "birthday rally." The exchange will officially celebrate five years since its registration on September 3. Over this period, the BSE has maintained its role as a primary platform for innovative small and medium-sized enterprises, with its "reservoir" effect in the capital market continuing to expand, delivering an impressive financing track record.

To date, the BSE hosts 339 listed companies with total initial public offerings reaching approximately 77.704 billion yuan. Capital allocation has been clearly directed toward the real economy, with over 80% of funds flowing into national priority sectors such as green and low-carbon initiatives, the digital economy, high-end equipment manufacturing, and new materials. From an industrial standpoint, these 339 firms are deeply rooted in manufacturing, with mechanical equipment companies leading at 73. Basic chemicals follow with 39, while power equipment and automotive sectors rank third and fourth with 38 and 33 firms, respectively. Additionally, electronics, pharmaceuticals, and computer-related industries each have over 20 companies, signaling the rapid rise of specialized "little giant" enterprises across various niches.

Industry experts noted in discussions that the BSE has essentially completed its initial phase over the past five years: establishing a regulatory framework, expanding market scale, and solidifying its market positioning. The next phase should pivot from scale growth to quality enhancement, with reforms focusing on improving liquidity, pricing efficiency, financing capabilities, and the overall quality of listed companies.

From 81 to 339 companies

Since its inception, the BSE has made a significant leap from its origins as a transfer platform for the New Third Board's select tier to a fully operational independent securities exchange. As a key institutional innovation in China's capital market for innovative SMEs, the BSE started with 81 listed companies at its opening and has now grown to 339, collectively raising 77.704 billion yuan and achieving a total market capitalization exceeding 850 billion yuan.

Examining individual fundraising efforts, two companies have raised over 1 billion yuan: BTR New Material Group and Kaifa Technology, securing 1.672 billion yuan and 1.169 billion yuan, respectively. A further 17 companies, including China Scientific Instruments, Oulun Electric, Qiaoluming, and Jinhua New Materials, have raised 500 million yuan or more. Market liquidity has also steadily improved, with over 11 million qualified investors—nearly triple the number at launch—and more than 3,000 public funds participating. Average daily trading volume this year stands at approximately 20 billion yuan.

According to Yang Shujuan, Managing Partner of EY's Government & Infrastructure Practice and Beijing Office Managing Partner, the BSE's listed company count has grown by two to three times since opening, with market cap and investor numbers rising in tandem, forming a cluster of innovative SMEs with notable scale and industrial characteristics. Institutional participation from public funds, social security funds, and insurance capital has increased, gradually improving the investor structure.

Zhang Peng, Deputy Director of the Chinese Academy of Social Sciences' Research Center for Listed Companies, noted that BSE-listed firms typically have smaller market caps, strong growth potential, and higher volatility, necessitating long-term capital, professional institutions, and more seasoned retail investors. Shifting the investor base from "quantitative expansion" to "qualitative improvement" would bolster pricing efficiency, stabilize market expectations, and enhance liquidity and activity.

The financial performance of BSE-listed companies has been notably strong. In the first half of 2026, they collectively posted operating revenue of 138.566 billion yuan, with average revenue per company at 409 million yuan, up 15.11% year-on-year. Net profits totaled 11.783 billion yuan, averaging 34.7592 million yuan per firm, a 17.58% increase. Business results continue to improve, with 240 companies (over 70%) reporting revenue growth and 282 companies remaining profitable, maintaining an overall profitability rate of 83%. Second-quarter profitability strengthened, with revenue and net profit climbing 21.28% and 58.93% quarter-on-quarter, respectively. Newly listed companies in 2026 are of high quality, posting average first-half revenue and net profit 1.23 times and 3 times the market average.

Machinery and Equipment Leads the Way

From an industrial perspective, the 339 listed companies are deeply entrenched in manufacturing, with mechanical equipment firms taking the lead at 73. Manufacturing remains the cornerstone of BSE listings, with numerous enterprises embedded in supply chain supporting roles, focusing on component processing, specialized equipment R&D, and new material innovation to address supply chain gaps. By sector, mechanical equipment tops the list at 73 companies, representing over a fifth of the total. Basic chemicals follows with 39. The power equipment and automotive sectors each have over 30 companies (38 and 33, respectively), while electronics, pharmaceuticals, and computer-related industries each surpass 20.

Statistics show that the BSE hosts 258 SMEs, accounting for 76.11% of listings, and 293 private enterprises, making up 86.43%. These private SMEs have demonstrated strong resilience, with first-half revenue growth of 14.92%, up 7.38 percentage points year-on-year, reversing a profit decline to achieve 1.1% growth. Profitability remains solid, with gross and net margins at 23.18% and 7.08%, respectively. Order backlogs are healthy, with average contract liabilities of 38.3116 million yuan, up 7.6% year-on-year.

Over 60% of BSE-listed companies are recognized as national-level specialized "little giant" firms, and 18 have been designated as national manufacturing champions, cementing the exchange's status as a key hub for such innovators. Yang Shujuan emphasized that the BSE's most prominent achievement is transforming "specialization and innovation" from a policy-level designation into an asset class that the capital market can identify, evaluate, and allocate resources to. This aggregation fosters a virtuous cycle: concentrated listings of companies with core technologies and market niches attract professional investors focused on tech and growth sectors, deepening market understanding of these business models. Additionally, tailored listing and financing frameworks allow the market to assess firms on R&D capabilities, industry standing, and growth potential, rather than relying solely on short-term revenue and profit metrics.

Over 200 Companies in the Pipeline

Beyond current listings, the BSE boasts a robust reserve pipeline. According to statistics, more than 200 companies are currently in the BSE IPO process. Based on iFinD data from Hithink RoyalFlush, Saiweida and Jiatuo Intelligent are at the acceptance stage; 155 firms such as Yujian Health and Changde Technology are undergoing inquiry; 10, including Sunxin New Materials and Xuyang New Materials, have passed listing committee reviews; and Aidi's IPO faced a deferred review on August 6. Furthermore, 30 companies like Yangde Environmental Energy and Weite Environment have filed for registration, 20 such as Dingli Technology and Shanghang Technology are on hold, and 7 including Shiji Digital and Bairuiji have registration approval but are not yet issued.

The pace of IPO reviews is also accelerating. During the week of August 31 to September 4, three companies—Jiahong New Materials, Xinpai Intelligent, and Changde Technology—are scheduled for listing committee reviews, set for September 3 and 4. An unnamed accountant pointed out that the BSE's value to SMEs extends beyond financing. During the listing preparation process, companies must systematically address issues like revenue recognition, cost accounting, related-party transactions, capital management, and internal controls, while also refining board operations, information disclosure, and risk management mechanisms. This process effectively drives enterprises from relatively loose management models toward more standardized, transparent, and sustainable modern corporate governance. The BSE's support for innovative SMEs carries dual value: providing capital market financing for R&D and industrialization, and promoting enhanced governance and operational quality through regulation and oversight. In the long run, the latter is equally crucial for sustainable enterprise development.