On June 23, Industrial Bank (IB) held the thematic promotion meeting of the “Sesame Blooming” Program of Industrial Bank to Assists Small and Medium Sized Science and Technology Enterprises to Make Breakthroughs on the New Three Boards” in Beijing jointly with the Business Management Department of the People’s Bank of China, Beijing Banking Regulatory Bureau, Beijing Municipal Bureau of Financial Work and the Administrative Committee of Zhongguancun Science Park, announcing that it would employ the “IB Sesame Blooming” SME IPO Program to provide financing channels for enterprises planning to list on the main board, SME board or GEM board, and would assist technology-oriented SMEs in making breakthroughs on the new three boards, so as to open a new chapter for the close cooperation and joint development between technology and finance.
It is reported that the “New Three Boards” now specifically refers to the stock offer and transfer system of non-listed stock companies in the Zhongguancun Science Park, and it is mainly to provide an agency stock transfer platform to non-listed stock companies in the state-level hi-tech zone and financing channels to enterprises in the hi-tech zone that are not qualified to list on the main board, SME board or GEM board. When the quoted enterprises meet the requirements of the above boards at the Shanghai Stock Exchange and Shenzhen Stock Exchange, they may then apply to enter the market of each board through the transfer mechanism. The “New Three Boards” create a greater financing space and more convenient financing approaches for quoted enterprises, and construct channels for venture investment. According to the eight key tasks of the China Securities Regulatory Commission (CSRC) in 2011 proposed by Chairman Shang Fulin of CSRC, the so-called “New Three Boards Expansion” in the industry, that is, extending the pilot scope of New Three Boards for Zhongguancun and constructing a national OTC market under unified regulation; it is called the No. 1 project of the reform of the capital market this year and it is estimated that the pilot scope may extend the other 20 hi-tech parks around China.
The “IB Sesame Blooming” SME IPO Program innovatively released by IB, targets supporting SMEs until they become listed and mainly provides services to these SMEs characterized by “three high points and six new points”, namely the new economy, new service, new rural area, new energy, new material and new business model; high growth, high technology and high added value. By integrating the two kinds of financial service tools – conventional banking and investment banking, the program provides one-stop comprehensive financial service solutions combining “creditor’s rights + stock rights + IPO”. It is said that, by the end of May 2011, of the customers joining the “IB Sesame Blooming” program, there are 49 in the IPO guidance stage, seven who have passed the IPO guidance, 22 reported to CSRC, seven awaiting IPO after passing the CSRC examination, and 19 listed on the SME board or GEM board; 46 successfully introducing private placements, and 12 signed agreements with risk investment agencies or private placement institutions; one realizing refinancing after successful IPO; and 16 successfully issuing bonds or waiting for issuance after registration.
To develop SME financial business vigorously has been and is the strategic focus adopted by IB to transform its business development model and profit model over recent years. Up until now, IB has established special business offices for small enterprises in nearly 40 branches across China. With an outstanding team possessing professional knowledge covering financial affairs, investment banking, finance and law, etc., the bank has the professional strength to provide an efficient and comprehensive package of financial services to SMEs in the areas of corporate financing, capital operations, wealth management, corporate governance, etc.
At the meeting, brokerages invited by the organizer also introduced various emerging direct-financing tools and provided technical guidance for SMEs on opening up new financing channels within the capital market and bond market.