In the future, a professional service platform for supporting the listing and financing of domestic enterprises which plan to get listed or have been listed on the New OTC Bulletin Board will be available, and that is the “Special Road Show for Enterprises on the New OTC Bulletin Board”.
From August 24 to 25, the first financing lease company listed on the New OTC Bulletin Board in China, Rongxin Leasing Co., Ltd., attended the “Serving the ‘Belt and Road Initiative’ – Special Road Show for Fujian Enterprises on the New OTC Bulletin Board” held by Industrial Bank (IB) in Fuzhou, exchanging ideas with brokerages and investment institutions present on the conference with regard to the needs of offering tailored additional shares.
At the conference, 14 enterprises from Fujian which have listed or plan to get listed staged road shows with regard to the needs of listing, market making and financing. Of them, there were 7 manufacturers of smart equipment. Representatives from nearly 20 securities companies and equity investment institutions, such as Industrial Securities, Huafu Securities, Guotai Junan, GF Securities, Guosen Securities, Industrial Fund, Huafu Fund, JD Capital and Tianxing Capital, listened to the introductions of road show enterprises about their business operation, industrial situation, development prospect, business model, profit model, etc. Some securities companies and equity investment institutions showed interest in cooperation and investment on the site, hoping to conduct the due diligence investigation as soon as possible.
It is reported that on July 20 this year, Fujian Province printed and issued the “Action Plan of Fujian Province to Implement ‘Made in China 2025’” to push ahead smart manufacturing vigorously, speed up the transformation and upgrading of conventional manufacturing, and stride toward a strong manufacturing province. Meanwhile, a range of measures were also promulgated to offer financial support for upgrading and transformation of enterprises and encourage growing smart equipment enterprises to get listed and trade on the “New OTC Bulletin Board”.
As revealed by relevant statistics, by the end of August 20, the number of enterprises listed on the “New OTC Bulletin Board” of Fujian reached 100, ranking No. 10 across China in terms of the number of listed enterprises. The amount of funds raised in 2014 totaled RMB 858 million, ranking No. 9 around China.
Zhou Wei, General Manager of Corporate Finance Marketing Management Department of IB, indicated: “This road show is one of the measures that our bank takes to support the real economy in regions along the Belt and Road and an action to respond to the call of Fujian Province to speed up the development of the smart manufacturing industry. We hope that the road show financing platform built by our bank jointly with other financial institutions like brokerages and fund companies can enable more enterprises engaging in the real economy to receive equity and debt financing. In this way, we can bring into play the role of finance to serve the real economy in a real sense.”
It is learned that IB held the “Serving the ‘Belt and Road Initiative’ – Special Road Show for Xinjiang Enterprises on the New OTC Bulletin Board” in Beijing in July. Up to now, 1 of the 7 enterprises participating in the road show in Beijing has signed an investment agreement with equity investment institutions and other 5 ones have started substantial cooperation negotiation with equity investment institutions.
IB started to make business arrangement for the New OTC Bulletin Board two years ago, and launched products of the “OTC Pass” series officially in this June. This series includes four types of products, namely OTC loan, OTC equity pledge financing, investment-based joint loan and investment-loan pass, characterized by “complete product families, all-round service process, guarantee-free credit, efficient examination and approval, linkage between stock and bond, combination of investment and financing”. All enterprises listed on the New OTC Bulletin Board which meet the threshold requirements can get a line of credit for guarantee-free loan up to RMB 10 million, and enjoy the equity financing services offered by IB group and equity investment institutions recognized by IB.
According to the introduction of Zhou Wei, over 20 enterprises which have got listed or plan to get listed on the New OTC Bulletin Board have received financing via the products of “OTC Pass” series within only two months after its launch. By the end of July, the number of enterprises listed on the New OTC Bulletin Board under the support of the bank hit 626, up by 124% over the beginning of this year.