Beijing Fourth Board Market Settled in the National Cultural Industry Innovation Experiment Zone

The National Cultural Industry Innovation Experiment Zone located in Chaoyang District of Beijing signed a strategic cooperation agreement with Beijing Equity Trading Center on October 28. The cultural innovation board of Beijing Equity Trading Center (also known as “Beijing fourth board market”) has officially been settled in the National Cultural Industry Innovation Experiment Zone, signifying the expedited launch of Beijing fourth board market, which is the equity trading platform especially for the cultural innovation industry. In the future, with the National Cultural Industry Innovation Experiment Zone at the heart, it will reach Chaoyang and Beijing’s other districts and counties. Through the fourth board market, cultural and innovative firms will connect to capital markets on various levels and get on the fast track.

According to Cheng Jiuyan, General Manager of Beijing Equity Trading Center, the idea of professional operation, multi-position management and moderate innovation will be adopted for the fourth board market, which will be mutually complementary business-wise with Shanghai and Shenzhen stock exchanges and the new third board market. On the condition of controllable risks, efforts will be made to explore new ways to address difficulties encountered by SMEs in fund raising. This time, the cultural innovation sector was set up in Beijing fourth board market, to provide listed cultural innovation enterprises with professional services such as financing, training/guidance, equity management and transfer from OTC.

Cheng Jiuyan noted that by getting listed on Beijing Equity Trading Center’s platform enterprises were entitled to the perks of financing channels and incubation without being subject to any financial threshold or having to pay service charge. Beijing fourth board market will make great efforts to foster enterprises in the National Cultural Industry Innovation Experiment Zone, and promote SMEs’ incubation, development and growth, until they get listed in other markets.

According to Feng Chunqiu, deputy director of the Publicity Department of Chaoyang District CPC Committee and director of the Management Committee of the National Cultural Industry Innovation Experiment Zone, the National Cultural Industry Innovation Experiment Zone will fully leverage its edge in ample innovation resources and the “early and pilot implementation" policy. By harnessing the equity trading platform, the zone will break information barriers to the integrated development of culture and finance, and connect cultural industry parks and enterprises in the zone. It will press ahead with the building of corporate credit system, the “Hummingbird Initiative”and other key work, promote SMEs’ equity financing and debt financing through various channels, and help them grow in a professional and healthy manner.

Meanwhile, the National Cultural Industry Innovation Experiment Zone will quickly build six platforms in light of cultural and creative enterprises’ characteristics, including financing, trading, incubation, restructuring, publicity and innovation platforms. When getting listed on the fourth board market, businesses from the zone are entitled to registration and trusteeship, agency service for matters with the industrial and commercial administration, listing and display, capital connection, standard coaching, training, and consulting/guidance services, thereby connecting to more upscale capital markets.

Set up jointly by the Ministry of Culture and Beijing Municipal Government, the National Cultural Industry Innovation Experiment Zone is China’s one-and-only national experiment zone for cultural industry innovation, and also the most dynamic innovation center in the capital city’s cultural industry. As of the end of September 2016, a total of 31,235 cultural enterprises and organizations got registered in the zone. From January through September this year, 3,567 cultural and creative enterprises were settled in the zone, which includes 260 firms with a registered capital of more than RMB 50 million each, and 86 with a registered capital of over RMB 100 million each. The total registered capital came to RMB 23.58 billion. By renovating old industrial factory buildings, upgrading traditional commercial facilities, vacating and transforming physical markets and selecting high-end enterprises for rural collective industrial land projects, it transformed and upgraded 56 cultural industry parks and bases including Beijing National Advertising Industrial Park, Laijin Creative Industrial Park and Jintian Film & Television Industrial Park.