News Analysis China will soon launch a stock exchange in Beijing to serve small and medium-sized enterprises (SMEs), but analysts warn that this model has existed in China before and turned out to be a failure. The Beijing Stock Exchange (BSE) was set up to serve innovative SMEs, Chinese leader Xi Jinping said in a speech at a global trade summit in Sept. 2. Shanghai Stock Exchange (SSE) and the Shenzhen Stock Exchange (SZSE) were specifically established to provide funding for large enterprises only. Few SMEs are funded on the Main Board Market. In order to solve this problem, the National Equities Exchange and Quotations (NEEQ)—commonly known as The New Third Board–was established for SMEs within the Shenzhen Stock Exchange. The New Third Board was officially inaugurated on Jan. 16, 2013. It is China’s third national stock exchange after the SSE and the SZSE. It is also the country’s first stock exchange …