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It has been a long time since there has been any news from the Beijing Stock Exchange (BSE).

Many retail investors have once again forgotten about the BSE.

The Beixin 50 Index has also fallen back below 750 points, with the previous two lows being 702 points and 709 points.

This means that the investment opportunities in the BSE are actually approaching and are worth paying attention to again.

Today, let's have a good discussion about the BSE.

Focusing on several core issues that everyone is very concerned about.

1. What is the positioning of the BSE.

2. Where are the investment opportunities in the BSE.

3. The current position and cycle of the Beixin 50 Index.

Before discussing these issues, we need to clarify that at present, the vast majority of listed companies, especially those in the science and innovation sector, are still going through the IPO process on the Science and Technology Innovation Board.The IPOs on the Beijing Stock Exchange (BSE) are still mainly concentrated in the so-called "New Third Board" innovation layer, with a majority of companies queuing for transfer boards.

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Although there are precedents for direct IPOs on the BSE, the number of companies submitting IPO applications to the BSE is not large.

The reason for this situation is still due to the liquidity of the BSE, which has not been fully opened up for the time being.

There are relatively few retail investors participating, and institutional investors are also not very active. Even the BSE 50 Index only has an OTC ETF, without an in-venue ETF trading channel, and the scale is very small.

Even though the BSE had a round of speculation at the end of 2024, it has been forgotten by the market in less than half a year.

The entire BSE system may still need time to integrate into the entire A-share system.

Even in the trading software and stock software that are usually opened, the figure of the BSE cannot be found.

The ones that firmly occupy the C position are still the Shanghai Composite Index, Shenzhen Component Index, ChiNext, and the Science and Technology Innovation Board, the four major indexes.

But this does not mean that the BSE has no opportunities, and the BSE will continue to fall. In fact, the BSE has already been surging under the surface.

After understanding the BSE, you will find that there are definitely opportunities for capital to get rich in the BSE 50.1. What exactly is the positioning of the Beijing Stock Exchange (BSE)?

The Shanghai Stock Exchange (SSE), Shenzhen Stock Exchange (SZSE), and Beijing Stock Exchange (BSE).

Being called a stock exchange, it must have strategic significance, and the dimension is very high.

From the previous Small and Medium Board to the later Growth Enterprise Market (GEM), to the most recent Science and Technology Innovation Board (STAR Market), they all have a strategic height, but they are limited to the board and index.

The BSE is at the same level as the SSE and SZSE.

Considering Beijing's political status, the establishment of the BSE can be imagined, and it must have a purpose.

It can't be just a simple channel for the transfer of the New Third Board to the main board.

So why has the BSE been bearish since its listing in the past two years, without any action, with such a high strategic height, what does the BSE intend to do.

It is because the IPO matters of the Science and Technology Innovation Board have not been completely rectified, and there is no time to take care of the BSE.The Science and Technology Innovation Board (STAR Market) is clearly a step ahead of the Beijing Stock Exchange (BSE), which is a fact.

However, this does not affect the status and purpose of the BSE.

The companies listed on the BSE generally have a market value of less than 1 billion, and smaller ones are only 300-500 million.

The current ChiNext Board and the STAR Market, the listed companies are basically above 2 billion in market value, and there are some medium-sized, or even large enterprises, with a scale of tens of billions, are listed on the STAR Market.

Previously, SMIC, and later, Huahong Semiconductor, both have a market value of tens of billions, or even hundreds of billions.

It can be said that the main board is eliminating the so-called micro-cap stocks, while the BSE is a breeding ground for micro-cap stocks.

The BSE is often associated with four words, "specialized, refined, specialized, and innovative," which means that technology companies with specialized, refined, specialized, and innovative characteristics, in the early stages of development, when the market value is small, may skip the road of capital incubation and directly enter the BSE.

If this point is passed, the BSE and the so-called "three boards" transfer board are completely different things.

2. Where are the investment opportunities of the BSE?

The investment opportunities of the BSE actually have two points.Firstly, it pertains to the innovation of small and micro enterprises shifting from the New Third Board (NEEQ) to the Science and Technology Innovation Board (STAR Market) direction.

This sentence might be a bit convoluted, but the explanation is quite straightforward. It means that the original valuation system was based on the NEEQ, and now the valuation system is based on the STAR Market.

We all know that the smaller the market cap, the higher the valuation given.

For small and micro enterprises, the price-to-earnings (P/E) ratio is significantly higher than that of large-cap companies.

Currently, the P/E ratio of the Beijing Stock Exchange (BSE) is less than 20 times, which is far lower than that of the Growth Enterprise Market (GEM) and the STAR Market. There is a significant valuation space here that can be leveraged.

Secondly, it is about the injection of capital liquidity.

The current sluggish state of the BSE is due to the overall lack of capital in the market.

A relatively high threshold has blocked the way for retail investors, coupled with the infrequent IPOs, and no capital deliberately taking over the market, so even the public funds, which are considered to be the market takers, do not pay much attention to the BSE.

It can be said that the BSE is extremely short of money.

Being extremely short of money is a challenge, but also an opportunity, which means that once capital is injected, the liquidity of the BSE will greatly improve.In this scenario, it is entirely possible for the entire Beijing Stock Exchange (BSE) to soar to new heights.

If the restructuring of the BSE is combined with the injection of liquidity, the potential for the BSE's growth is enormous.

After all, as one of the three major exchanges, having a market value of several hundred billion is not considered large and is entirely achievable in the short term.

3. The current position and cycle of the Beixin 50 Index.

The Beixin 50 Index cannot be measured solely by the valuation system, as there is no precise positioning.

Instead, we can make a simple range judgment based on the index points of the Beixin 50.

The index, which was at 1,000 points, once reached close to 1,200 and then fell all the way to just over 700 points.

So, will 700 points be the super bottom for the Beixin 50?

To be honest, it is not easy to determine, and we can only say that it is in the bottom area of the Beixin 50.

Therefore, it is currently impossible to judge whether the Beixin 50 has reached its bottom, and there may still be lower positions.However, this position has previously seen a significant volume of transactions, indicating that capital has entered the market.

From a technical perspective, if the Northern Securities 50 (Beijing Stock Exchange 50 Index) experiences further declines, it would form a bottom divergence.

This also implies that even if 700 points is not the bottom, it is not far from it.

This is why there is a repeated emphasis on paying special attention to the movements of the Northern Securities 50 below 750 points.

Because capital will not give you time to build a position; if the Beijing Stock Exchange soars directly, it could rise by 10%-20%, or even 30% in a single day (the Northern Securities 50 previously rose by a maximum of 11.41% in a day).

Secondly, looking at the cycle and trend, it is currently in a downtrend, but there are already signs of bottoming and accumulation of positions.

That is to say, below the 750-point position, capital is mainly entering rather than leaving.

It is not easy to acquire the chips of the Beijing Stock Exchange, as there are relatively fewer retail investors, and the concentration of chips is actually relatively high.

Only by using a slow decline and oscillation to accumulate positions can one gradually erode the chips in a more reasonable manner.

The rebirth of the Northern Securities mainly relies on the policies of the Beijing Stock Exchange, but the core is still a game of capital.From being ignored to being discussed by everyone, it's actually something that can be resolved with just a big bullish candlestick.

For ordinary investors, gradually making regular investments in the Northern Stock Exchange is currently the best strategy, which is both simple and effective.

Just imagine, when the index of the Northern Stock Exchange 50 reaches 1500 points, or even above 2000 points, what a grand scene it would be.

The essence of investment is foresight; those who understand will naturally understand.