The Beijing Stock Exchange (BSE) is advancing multiple measures to promote high-quality development under its "15th Five-Year Plan" framework, including accelerating the launch of the BSE 50 ETF. On October 29, 2025, at the Financial Street Forum Annual Conference, the BSE Chairman stated that under the guidance of the China Securities Regulatory Commission (CSRC), the exchange will deepen planning for market development strategies and initiatives during the "15th Five-Year Plan" period, focusing on four key dimensions to elevate services for innovative small and medium-sized enterprises (SMEs).
1) The BSE is committed to becoming a primary platform for innovative SMEs, having achieved positive results in recent years. 2) During the "15th Five-Year Plan," the BSE will prioritize key tasks, coordinate multi-tier market development, and strengthen support for strategic sectors and weak links in line with financial policy directives. 3) The exchange will reinforce market foundations, promote balanced investment and financing, and enhance market stability. 4) It will actively address market demands by improving product systems, service frameworks, and technological infrastructure. 5) The BSE will maintain an open-market approach, leveraging its platform to foster collaboration and create a favorable ecosystem for innovative SMEs.
Additionally, on October 31, 2025, the BSE and the National Equities Exchange and Quotations (NEEQ) evaluated securities firms’ performance for Q3 2025 under their quality assessment framework. The results revealed intensified competition among brokers, with a reshuffle in the top 10 rankings. Large brokers dominated in brokerage and market-making, while niche players with expertise in NEEQ and BSE maintained strong competitiveness.
**Market View**: This week, the BSE 50 Index closed at 1,582.71 points (+7.52% WoW), while the BSE Specialized & Innovative Index reached 2,677.55 points (+5.67% WoW), with trailing P/E ratios of 74.92X and 86.17X, respectively. Sector-wise (excluding loss-making firms), P/E ratios were: high-end equipment (44.15X), IT (96.76X), chemical materials (47.86X), consumer services (57.12X), and biopharma (40.38X).
With improving risk sentiment, we recommend focusing on tech growth and undervalued stocks within the BSE 50, particularly as the BSE 50 ETF launch nears. Our updated stock picks include: - **IT**: Fujida, Wanyuantong - **Chemical Materials**: Bettery, Anda Tech, Hechang Polymer, Yinuowei, Wuxi Jinghai, Ruihua Tech - **High-End Equipment**: Kaite, Jiezhuo Tech, Tongli Heavy, Wuxin Tunnel, Lintai New Materials, Hefei Gaoke - **Biopharma**: Deyuan Pharma, Zitonggong
💡 **Risks**: Policy implementation delays, data inaccuracies, macroeconomic uncertainties.