NEEQ launches first two equity indexes

National Equities Exchange and Quotations, China's third national equity exchange, announced on Wednesday the launch of its first two equity indexes.

The NEEQ Component Index (with a code of 89901) is composed of the sample shares of 332 small and medium-sized enterprises listed on the board, including equities through agreement transfer or market making. The index will be released after the market closes.

The NEEQ Market Making Component Index (with a code of 89902) is made up of 105 listed SMEs with market making activities. The index was real-time during the whole trading day.

A market maker at NEEQ is mainly a securities company that quotes both a buy and a sell price in the equity in inventory, hoping to make a profit on the bid-offer spread, or turn. It is a way to make the NEEQ market more active.

The two indexes will be adjusted every quarter.

There were 2,113 enterprises listed at National Equities Exchange and Quotations as of March 7 and their total market value totaled 790 billion yuan ($127 billion).

"With the rapid development of NEEQ, developing an equity index has formed a good market basis, and the participants also have stronger demand for an equity index," said Sui Qiang, deputy general manager of the NEEQ.