Beijing, Shanghai and Shenzhen all have stock exchanges!

How does Guangzhou misplace competition?

I believe that Guangzhou can rely on the Futures Exchange to build a global commodity pricing center and risk management center.

Let’s first look at the positioning of the major exchanges. How are they divided?

The main mission of the Hong Kong Stock Exchange is to meet the mainland's demand for overseas listings, help mainland companies attract overseas financing, and also help China's investment needs go overseas.

This is also the essential function of Hong Kong as a "super contact".

The Taiwan Exchange mainly serves corporate financing in Taiwan, China.

The Shanghai Stock Exchange is the A-share main board market. The main undertaking companies are central enterprises, state-owned enterprises and some well-known large listed companies. After the establishment of the GEM, technology companies are mainly listed on the Shanghai Stock Exchange.

The Shenzhen Stock Exchange mainly serves small and medium-sized enterprises and entrepreneurial enterprises, mostly high-tech enterprises, and helps provide financing services to small and medium-sized enterprises, innovative and high-tech enterprises.

There is a certain overlap in functions between the Shanghai Stock Exchange and the Shenzhen Stock Exchange.

On September 2, 2021, the Beijing Stock Exchange was born!

This is the fifth stock exchange in China after the Shanghai Stock Exchange, Shenzhen Stock Exchange, Hong Kong Stock Exchange and Taiwan Stock Exchange.

From the perspective of positioning, the Beijing New Stock Exchange serves innovative small and medium-sized enterprises that are "specialized, specialized and innovative". Beijing already has the New Third Board, which has a platform foundation and talent base in financing small and medium-sized enterprises.

The exchange is located in Beijing, which is the lowest cost and most efficient option.

The arrival of the Beijing Stock Exchange has a very clear purpose, which is to target the financing of "specialized, new, small and medium-sized enterprises".

Of the four major first-tier cities in China (Mainland), only Guangzhou does not have a stock exchange. So how can Guangzhou stagger competition?

First of all, the Guangdong-Hong Kong-Macao Greater Bay Area, where Guangzhou is located, already has the Hong Kong Stock Exchange and the Shenzhen Stock Exchange, and there is also an ASX that is being planned.

The "Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area" released in 2019 clearly states: Study the establishment of a securities market denominated in RMB and settled in Macao.

At the beginning of 2021, the National Development and Reform Commission stated: Study and explore the construction of the Macau Stock Exchange in Hengqin, promote the moderately diversified development of Macau's economy, and assist the construction of the Guangdong-Hong Kong-Macao Greater Bay Area.

Therefore, ASX’s functions are very unique and irreplaceable, and the possibility of approval is very high.

If Macau also sets up a stock exchange, then there will be three stock exchanges in Daya Bay in the future. It is almost impossible to set up another one in Guangzhou.

Secondly, the central government has approved the establishment of a new futures exchange in Guangzhou this year, which is also a very rare move.

Think about it, everyone, the fact that this new futures exchange is not located in Shenzhen, which has a stronger financial industry, is enough to show that the state's support for Guangzhou is still very strong.

Moreover, the futures exchange is also a heavyweight national financial infrastructure that can "pump water" across the country like the stock exchange. If it is done well, it will also have great potential.

Looking around the world, financial centers can be roughly divided into three categories: one is dominated by the securities market, such as New York, Hong Kong, and Shanghai; the other is dominated by the banking and bond markets, such as Beijing, London, and Tokyo; and the other is dominated by the banking and bond markets.

Futures markets dominate, such as Chicago.

In this sense, Guangzhou is expected to become an international financial center similar to Chicago.

Chicago, also known as the Windy City, is the largest futures trading center in the United States, the third largest city in the United States after New York and Los Angeles, and the second largest financial center in the United States after New York.

If compared with Chicago, Guangzhou's financial industry also has a lot of room for imagination, not much worse than Beijing, Shanghai and Shenzhen.

I believe that Guangzhou can rely on the Futures Exchange to build a global commodity pricing center and risk management center.