Shenzhen Bourse to Merge Main and SME Boards Next Week

What’s new: The Shenzhen Stock Exchange’s main board and SME board are set to merge on April 6 upon the top securities regulator’s approval, according to a Wednesday statement (link in Chinese) from the bourse, which will leave the exchange with only two boards: the main board and the Nasdaq-style ChiNext board.

After the merger, companies listed on the SME board will be classified as main board-listed companies. The merger also means companies will be able to start listing again on the main board, which hasn’t seen an IPO in approximately 20 years.

The context: At the end of March, the Shenzhen Stock Exchange had more than 2,000 listed companies in total, with the combined market value reaching 33 trillion yuan ($5 trillion).

The main board, which dates back to the exchange’s founding in 1990, is home to mainly big blue-chip stocks. The SME board chiefly serves small and midsize enterprises with growth potential. The ChiNext focuses on high-tech startups.

Related: Exclusive: Shenzhen Bourse Plans to Merge Main Board With Upstart That Supplanted It

Quick Takes are condensed versions of China-related stories for fast news you can use. To read the full story in Chinese, click here.

Contact reporter Guo Yingzhe (yingzheguo@caixin.com) and editor Marcus Ryder (marcusryder@caixin.com)

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