More than 30 private equity institutions have applied to be market makers on the Beijing-based National Equities Exchange and Quotations, the third bourse on the mainland.

The imminent entry of new market makers is expected to improve liquidity on the NEEQ, or the New Third Board, and thus boost the financing of small and medium-sized enterprises listed on it.

Typically, market makers quote both buying and selling prices for stocks, and profit from the bid-offer spread. Their activity makes an exchange more active.