Beijing will establish a stock exchange focused on smaller businesses, says China's President Xi

• China will open a stock exchange in Beijing to foster development of small- and medium-sized businesses.
• Xi's announcement did not include when the new exchange based in the capital city will open.
• The exchange will support innovation-oriented companies, Xi said in an address to a trade fair.

China will set up a new stock exchange in the capital city of Beijing to support the development of private companies, China's President Xi Jinping said Thursday.

The exchange in Beijing will focus on small- and medium-sized enterprises that are innovation-oriented, Xi said Thursday in addressing the China International Fair for Trade in Services taking place in the capital. Xi did not say when the exchange will open.

Mainland China is already home to two major stock exchanges, with one located in the financial hub of Shanghai and the other in the city of Shenzhen which borders Hong Kong.

In a video posted by state-owned broadcaster CGTN, Xi said the Communist Party will work with other parties to share opportunities in the growth of the services trade and promote global economic recovery and expansion.

Xi said support for SMEs will also come from reforms at National Equities Exchange and Quotations. Also known as the New Third Board, the NEEQ exchange for small companies is based in Beijing.

A number of large, private Chinese companies have raised billions of dollars by going public on overseas stock exchanges, including in the US. The Chinese government in recent months has ramped up scrutiny of US-listed Chinese companies, among others, citing efforts to tackle issues ranging from anti-competitive behavior, pay inequality, and potential security risks in Chinese firms listing in the US.