A total of 345 small and medium sized enterprises (SMEs) went public in Guangzhou last year on the New Third Board (NTB), which serves as a national system for transferring shares and raising funds for SMEs. As of December 23, 201 of those companies were listed on the NTB, according to the Guangzhou Science and Technology Financial Service Center.
The system is seen as an easy financing channel with low costs, simple listing procedures and a short application period for start-up firms unqualified to be listed on major stock exchanges.
High-tech enterprises account for 80 percent of the 345 SMEs, and 90 percent of the listed enterprises successfully applied for science and technology projects.
Guangzhou ranks first in several categories involving the board: number of enterprises listed on the NTB, number of new enterprises listed on the board, growth rate of enterprises on the NTB and net asset value of enterprises on the NTB.
These achievements benefit mainly from Guangzhou government’s support and the city’s improved business environment.
Positive fiscal policy
The city’s government has set up a capital pool of credit risk compensation for SMEs, aiming to remove obstacles that obstruct banks from providing loans to small enterprises. The Bureau of Finance of the Guangzhou municipality injects 400 million yuan into this pool annually, and SMEs are given priority in unsecured loans. As of December 23, 281 enterprises were granted roughly 2 billion yuan in loans, according to Guangzhou financial service center.
Services from Guangzhou government
The Guangzhou Science Technology and Innovation Commission (GSTIC), after joining hands with securities traders, accounting firms, law offices, banks and insurance companies, carried out more than 40 professional knowledge training programs for 10,000 SMEs to help them know more about the NTB. Operating processes for subsidy applications and special projects, and loans for development of new products, were offered to enterprises at policy training seminars.
GSTIC also established the Guangzhou Science and Technology Financial Service Center to provide major support for those SMEs qualified to debut on the NTB. Detailed support programs include holding investment seminars and business salons for enterprises listed on the NTB.
(By Chris Wang, Louis Berney)