, China’s second-largest classifieds platform behind market leader (NYSE: WUBA), has been selected to join the higher echelons of the New Third Board, or National Equities Exchange and Quotations (NEEQ) market.

The NEEQ is China’s over-the-counter (OTC) system for trading shares in small and medium enterprises, primarily those in the tech and internet sectors. It offers an alternative path to financing outside of the tightly-controlled Shanghai and Shenzhen stock exchanges.

Baixing first listed on the NEEQ in March 2016.

Facing remarkable growth in terms of listed companies and trading activity, the NEEQ recently announced that it would be dividing itself into two separate markets, “basic companies” and “innovators”. A stringent set of preconditions must be met, such as consistent and sufficient growth, a certain market capitalization, and the total number of investors, for access to the “innovators” market.

Baixing is among 1,393 companies that were named to the innovator level, approximately 25 percent of all companies listed on the NEEQ. The division of the NEEQ into the two markets will take effect on June 27.

Baixing chairman Gao Yifeng indicated that joining the innovator market should lead to greater investment, which will be used to drive continued expansion into China’s quaternary, quinary and senary-level cities.

Baixing has been very active on the NEEQ, both in soliciting investment and as an investor. In January, the company issued RMB 14 million ($2 million U.S.) in new shares via the NEEQ (which we reported on here).

Baixing currently operates municipal-level classifieds services in over 200 Chinese cities across 27 provinces. In FY2016, Baixing generated revenue of RMB 340 million ($48 million U.S.), up from RMB 80 million in 2014. 

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