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China's Growth Firms to Receive Boost in Overseas Stock-Listing
Signs have shown that China's high- tech growth firms may expect a promising future in raising funds from overseas growth enterprise stock markets which are designed specially for small companies with little earnings but viable technology and good growth potential.
Chinese entrepreneurs from high-tech companies who are attending an international forum on overseas fund-raising Wednesday said they can see great opportunities from the overseas stock market.
Lack of funds have hampered new and high technologies in China from becoming productive forces and profitable industries. The Chinese government is actively seeking to expedite the formation of a venture capital investment system and set up an alternative stock market for growth firms. Raising funds from overseas growth enterprise market has also been proposed another good choice.
"China's high-tech companies have great potential to get listed on overseas growth enterprise stock markets, and with China's impending entry into the WTO, enterprises will surely become more involved in the European stock market," said Jane Zhu, head of the Asia Pacific Global Business Development at the London Stock Exchange.
The London Stock Exchange has launched its Technology Market and Alternative Investment Market to suit the fund-raising needs of high-tech firms and small companies. Chinese firms are welcome to get listed there, Jane said.
Last year, a number of Chinese Internet and e-commerce companies listed their shares on the NASDAQ Stock Market and the Hong Kong Stock Exchange.
The successful listing of these high-tech companies overseas paved the way for more listings by other high-tech firms, while boosting their confidence in getting permission to list shares overseas, experts attending the forum said.
A survey reveals that 60 percent of China's more than 20 high- tech enterprises chose Growth Enterprise Markets in Hong Kong, while another 30 percent viewed NASDAQ as their first choice. However, for those high-tech start-ups, there are other markets as well. Mark Lee P.L., vice president of the Singapore Exchange (SGX), said although the stock market in Singapore is comparatively small, it could be an ideal choice for Chinese enterprises.
"Companies listed on the SGX may enjoy lower listing costs, lower listing standards, and the widespread confidence the Singaporean investors have in Asian technological firms," Lee said, adding that SGX could also serve as a stepping stone for Chinese high-tech companies to enter the NASDAQ Stock Market. Dickson Hall, Asia business consultant for the Canadian Venture Exchange (CDNX), proposed at the forum a more viable way for Chinese enterprises to procure much needed funds. "Setting up a Sino-Canadian joint venture is an easier way for a Chinese enterprise to get listed on the CDNX. This will make it easier to get permission from the China Securities Regulatory Commission to list shares overseas."
The three-day forum on overseas stock-listing and international fund-raising is part of the ongoing Beijing International High-Tech Industries Week.
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