Since this year, the securities regulatory system has supported listed companies' direct financing development by implementing a series of measures including waiving listing fees, supporting severely affected regions and industries to accelerate recovery and development, facilitating private enterprises to go public for financing and mergers and acquisitions in accordance with the law, and enabling private enterprises to recover and develop rapidly. Data shows, this yearANewly listed stocks198Among companies, private enterprises are165Home, proportion83%Looking at different sectors, the majority of private enterprises are located on the ChiNext and STAR Market boards. In terms of industry distribution, private companies in machinery and equipment, electronics, and pharmaceutical biotechnology have the largest number.
Why are newly listed private enterprises mainly concentrated in the three industries of machinery and equipment, electronics, and pharmaceuticals and biotechnology? How should private enterprises utilize both domestic and foreign resources to strengthen and grow themselves? Frost & SullivanFrost & Sullivan,Dr. Wang Xin, Global Partner and President of Greater China at Frost & Sullivan (hereinafter referred to as 'Frost & Sullivan'), was interviewed by Securities Daily to discuss the current development status and future prospects of private enterprises supported by policies.
Securities Daily
2022Since the beginning of this year, securities regulatory authorities have introduced a series of policy measures to strongly support private enterprises in direct financing.
According to the sorting, in terms of equity financing, this yearAMore than 80% of newly listed companies are private enterprises, accounting for over half of the total fundraising amount. In terms of bond financing, special support plans for private enterprise bond financing, corporate bonds for technological innovation, and measures such as reduction in transaction fees have been gradually implemented.
"Overall, the financing environment for private enterprises has improved. Supporting direct financing for private enterprises can not only solve the practical difficulties they face but also promote better financial services for the development of the real economy," said Gui Haoming, chief market expert at Shenwan Hongyuan, to the Securities Daily reporter.
Private enterprises are an important entity in the capital market, and vigorously supporting the development of private enterprises has always been an important task for regulatory authorities.
While the capital market continues to strongly support the reform of state-owned assets and enterprises, strengthening and optimizing state-owned capital, it also unswervingly supports the innovation, transformation, and healthy development of private enterprises. At present, the number of listed private companies has exceeded3000Home, accounting for approximately2/3"In recent years, private enterprises have accounted for more than 80% of newly listed companies." "This year4At the beginning of the month, Yi Huiman, Chairman of the China Securities Regulatory Commission (CSRC), stated at the Third Member Representative Conference of the Listed Companies Association.
TonghuashuniFinDData shows that as of this year7month26day198Total funds raised from newly listed shares3432Yuan billion (including initial public offerings and listings on the Beijing Stock Exchange), of which,165Private enterprise fundraising1961Yuan, with the respective proportions of quantity and fundraising amount being83%,57%In addition,165Among the companies, those that have listed on the ChiNext board64The number of companies in (domestic) Shanghai is the largest, followed by the Sci-Tech Innovation Board (47(Home) secondly, the combined proportion67%; Looking at different industries, private enterprises are mainly concentrated in mechanical equipment (26Home), Electronics25Home), Medicine & Biology19The three major industries (home)
"
"In multi-level capital markets, the ChiNext and STAR Market are more suitable for small and medium-sized private enterprises. Both sectors are mainly positioned to serve technology innovation-driven and growing enterprises." Wang Xin, Global Partner at Frost & Sullivan and President of Greater China, told the Securities Daily reporter.
In terms of overseas financing, regulatory authorities have also continuously broadened and optimized the financing channels for private enterprises.2In the month, the "Regulations on the Supervision of Interconnectivity Depository Receipts Business between Domestic and Overseas Stock Exchanges" were released and implemented.13homeAPromotion of the joint-stock companyGDRissuance, and this13All companies are private enterprises.
"The financing difficulties for private enterprises still exist, especially in bond financing. Private enterprises default on bonds more frequently, and it is difficult for companies with average qualifications to issue bonds. Market confidence remains to be restored," said Gui Haoming.
Recently, the China Securities Regulatory Commission (CSRC) and two other departments jointly issued the 'Notice on Promoting the Bond Market to Better Support the Reform and Development of Private Enterprises', aiming to enhance the quality and efficiency of the bond market's service for private enterprise reform and development by strengthening financial service guidance, market supervision and standardization, and departmental communication and collaboration.
"With the implementation of a series of policies supporting private enterprise bond financing, the financing environment for private enterprises is gradually being restored and is expected to improve in the future." Wu Lina, Assistant General Manager of Federal Reserve Securities and General Manager of the Bond Business Division, told the Securities Daily reporter that the difficulty in private enterprise bond financing is the result of long-term accumulation of various complex factors. It requires the concerted efforts of the government, financial institutions, enterprises, and other parties to jointly promote its resolution.
*This article is reprinted from "Securities Daily", reporter Xing Meng , Original title: within the year165The newly listed private enterprises raised a total of1961100 million yuan The direct financing environment for private enterprises continues to improve ">
Frost & Sullivan Insight & Extended Readings
QFrom the perspective of industry distribution, why are newly listed private enterprises mainly concentrated in the three major sectors of machinery and equipment, electronics, and pharmaceutical biology?
A: In China's gradually improving multi-level capital market, the ChiNext and STAR Market have relatively relaxed conditions in terms of absolute scale of operating income and profits, making them more suitable for private enterprises. At the same time, the ChiNext and STAR Market are mainly positioned to serve technology innovation-oriented and growth-oriented enterprises. Major industry categories such as machinery and equipment, electronics, and pharmaceutical biotechnology, especially their sub-sectors like precision machinery, intelligent machinery, semiconductors, chips, innovative drugs, vaccines, etc., are representative fields of technological innovation and are also key industries supported by the state for technological innovation.
QSome believe that, driven by a series of policies, the equity financing environment for private enterprises has been restored and developed. Not only is the proportion of new share fundraising high, but overseas financing channels have also been broadened. What is your view on this perspective?
A: Solving the problems of difficult and expensive financing for private enterprises has long been a policy focus of China's financial regulatory authorities, with improving the equity financing environment for private enterprises being an important part of this effort.2021year11The establishment of the Beijing Stock Exchange in October is aimed at better supporting the development of all small and medium-sized enterprises, especially specialized, refined, characteristic and innovative ones, and effectively broadening financing channels for private enterprises.2021year12In the past month, the revision of the Shanghai-London Stock Connect rules has greatly expanded the scope of application and financing methods. It can be seen that in terms of policies and systems, the equity financing channels for private enterprises have been significantly broadened. Moreover, judging from the actual market operation, equity financing activities of private enterprises are becoming increasingly active. The fundamental improvement of the equity financing environment for private enterprises still depends on the long-term effect of relevant policies and systems as well as the improvement of the market environment.
QHow should private enterprises utilize both domestic and overseas resources to strengthen and grow themselves?
A: Overall, domestic and international capital markets each have their own characteristics, advantages, and disadvantages. From the perspective of enterprises, listing domestically offers advantages such as higher issuance prices, lower listing costs, familiarity with cultural systems, and easier policy direction to grasp. On the other hand, listing overseas has advantages such as a higher success rate and more funding supply. For private enterprises, it is necessary to start from the development stage of their business, market coverage, capital needs, management level, etc., and combine these with the different characteristics and market environments of domestic and international capital markets, along with in-depth cooperation with corresponding professional institutions, to formulate appropriate capital market operation plans to better support the long-term development of the enterprise.
