Beijing Inventory Change: China will create new finance middle in nation’s capital

New Oriental Education & Technology Group Inc. headquarters in Beijing, China, on May 31, 2019. Shares of New Oriental Education & Technology Group Inc. (New Oriental), a leading provider of private educational services in China, soared on Tuesday after the company reported quarterly revenue and next-quarter guidance that topped analysts' expectations.  Imaginechina/AP

President Xi Jinping announced the Beijing-based exchange at an international trade fair on Thursday, saying that he wanted to create a venue for “service-oriented” and “innovative” businesses. He did not say when the exchange would be established.

China already has two stock exchanges on the mainland, but they are located in Shanghai and Shenzhen, far away from Beijing. The Shanghai Stock Exchange, which was established in 1990, hosts mostly large-cap companies, including state-owned enterprises, banks and energy firms. The Shenzhen Stock Exchange has a bigger proportion of tech companies and small or medium-sized firms.

There’s also the Hong Kong Stock Exchange, but it is subject to its own legal and regulatory systems and is free of Beijing’s capital controls.

The move comes as the Chinese government’s regulatory crackdown on large private companies intensifies. Beijing has been working for nearly a year to rein in their power and influence.

And it’s being announced as Chinese…