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China Beijing Equity Exchange (CBEX) set a new record in property rights transactions in 2014.
Last year, it made deals on a total of 39,111 projects with a year-on-year increase of 28.02 percent and the total turnover reached 1 trillion yuan ($159.3 billion) with a year-on-year growth of 7.1 percent.
The equity transaction institution is not only a leading platform for mergers and acquisitions in China, but also an important one for the development of mixed ownership economy through extending service scopes, upgrading focused projects, attracting investors and improving service capability.
The transaction of state-owned property rights projects generated 93.551 billion yuan in 2014, up 47.52 percent year-on-year.
With the acceleration of the mixed ownership reform of the state-owned enterprises, many high-quality projects have been listed on the equity market to attract investors including listed companies and private equity funds to participate in the mergers and acquisitions.
In 2014, 20 listed companies accepted the transfer of 22 projects while nine PE firms accepted the transfer of 10 projects at the exchange.
The top five industries in trade turnover involve gas production and supply, electricity production and supply, finance, real estate and business services. Among them, finance and real estate have been among the top five for five consecutive years.
In the second half of 2014, financial enterprises lead the rally in A-share market and stock rights of financial enterprises including banks and insurance companies have also sold at the CBEX.
Meanwhile, with the deepening reform, an increasing number of state-owned enterprises have launched projects to increase share and capital.
The property rights market has played an important role in projects that involve capital-raising such as designing plans, finding investors, discovering fair prices and standardizing procedures.
The equity exchange will further develop in such areas as service mode innovation and financial product supply, gradually actualize the positive interaction among the property rights market, stock market and security market and build a marketization platform for all kinds of capitals and mixed ownership reform of the state-owned enterprises, according to Wu Ruchuan, the president of CBEX.
As an important market tool used by the government to manage the economy and a crucial builder and operator of the capital factor, the exchange has made many achievements in response to the coordinated development of Beijing, Tianjin and Hebei province.
On July 18, 2014, the CBEX, Tianjin Property Rights Exchange and Hebei Property Rights Exchange Center jointly established an alliance for the development of property rights market in Beijing.
An information platform of the alliance was launched at the same time and has released information about 2,000 projects including transactions of property rights and transfer of assets in the three regions.
The transaction platform for Beijing's travel resources has released 242 projects since it was established in 2013.
Besides, the carbon emission trading between Beijing and Hebei province has recorded progress.
The coordinated development for the Beijing-Tianjin-Hebei region will be the top priority, according to the government work report during the two sessions this year.
At present, the CBEX further analyzes the ways to activate its possible role of production elements market and strengthens the cooperation with its counterparts in Tianjin and Hebei to promote the building and the function of production elements market platform including industrial restructuring, mergers and acquisitions, investment and financing, and technology transaction.
