China Opens the Beijing Stock Exchange to List Small and Medium-Sized Businesses: Why the US Needs to Follow Suit

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Nov 03, 2021, 08:38 ET

CHICAGO, Nov. 3, 2021 /PRNewswire/ -- While stock exchanges are traditionally tools of capitalism, the Chinese have outpaced the US in its efforts to capitalize innovation in early-stage companies through creating listings on a small business stock exchange, a move Dream Exchange has been promoting in the US for some time. Dream Exchange will be discussing the Beijing Stock Exchange as well as its own new exchange in an upcoming webinar on Thursday, November 4th at 5:30 PM EST. The webinar is free, but registration is required.

China Opens the Beijing Stock Exchange to List Small and Medium-Sized Businesses: Why the US Needs to Follow Suit

It is no secret that the US and the Chinese have been competing in something of an innovation race in several industries including tech, healthcare, and energy. Both countries, however, benefit primarily from the US capital markets through listing on stock exchanges such as NASDAQ and NYSE. Innovation is driven in large part by access to capital investment.

Over the last 20 years, US stock exchanges have become increasingly exclusive in onboarding new company listings. In 1996, the average IPO (Initial Public Offering) size was just $60 million compared to $180 million in 2020 according to data gathered from Statista and Pepperdine University. The effects of this increase are commonly left out of discussions around reviving the US economy or stimulating innovation in early-stage businesses.

Those companies that went public raising near $60M through an IPO in the late 1990's include companies like Microsoft ($61 million) and Amazon ($54 million). Today, early investment in the next Microsoft or Amazon, is only available to a select group of venture capital/private equity firms or high net worth individuals.

A new startup stock exchange, Dream Exchange, has been speaking about this problem and its effects since its conception in 2017. The focus of this US-based exchange will be on listing early-stage companies on a new type of stock exchange called a venture exchange. The purpose of which will be like the Beijing Stock Exchange, but for the US market. A place where small and medium-sized companies and smaller investors can get access to one another in a liquid marketplace governed by the rules of a stock exchange.

About Dream Exchange:
In addition to creating the first venture stock exchange in the US, Dream Exchange will be opening the first-ever black-owned national stock exchange. Their focus will be on increasing participation and access to the capital markets, not only in the black community, but in all communities across the country.

Media Contact:
Jane Hayton
(312) 465-7912
[email protected]

SOURCE Dream Exchange