China’s Newest Stock Exchange Fails to Recapture Early Momentum

Only a minority of the stocks listed on the Beijing Stock Exchange (BSE) saw an immediate benefit from the bourse’s recent rule changes to boost trading, as the efforts didn’t apply to most other shares traded there.

The limited effect of the February measures to open the door to margin financing, securities lending and market making on the BSE is a sign that the changes haven’t helped the bourse gain much traction with investors, and may exacerbate a disparity between the most- and least-traded stocks on the exchange.