Quanzhou Shoe Companies Are Keen On Listing In Europe And America

"According to my observation, over the past year or so, there has been a significant trend in the choice of listed companies, including Fujian enterprises and Zhejiang enterprises, that they have shown strong interest in listing in the US and Europe, and their willingness to list in Europe and the United States is becoming increasingly strong," he said. "In Quanzhou,

Private enterprises will become the main force

In the post crisis era, entering the capital market has become a powerful weapon for Quanzhou's private enterprises to win the future competition.

Since 2010, the "Quanzhou plate" of the capital market has continued to grow rapidly.

As of May 31st, 9 enterprises in Quanzhou also landed in the capital market at home and abroad this year. Up to now, the total number of Listed Companies in the city has reached 54, and the total amount of initial listing financing is 28 billion 700 million yuan.

Quanzhou enterprises have become the "new darling" of the capital market.

Recently, Yang Ge, chief representative of New York Representative Office of Pan European exchange group, visited Beijing to understand the local industry and find potential customers.

Yang Ge said that the listing of Chinese enterprises in the United States can be divided into three main stages: from 1992 to 2004 or so, it is mainly the large state-owned enterprises, which need to dock with the largest capital markets in the world. From 2004 to 2005, the representative enterprises of this stage are the Internet and the wireless technology represented by these enterprises, which are listed in the US by hi-tech concept; and from 2006 to the beginning, they have entered the third stage. This stage is China's private enterprises going to the US market, the theme is high growth, and many Chinese private enterprises are growing at an annual rate of more than 10% years. The growth of the profits and incomes of these private enterprises is very amazing, far exceeding that of the similar companies in the world.

Yang Ge analysis said that as China's enterprises, the preferred listing place is A shares.

And if you seek overseas listing, many companies will choose to go to Hongkong or the United States.

From these three stages of listed companies' changes, we can analyze the reasons behind them.

Because these state-owned enterprises and private enterprises are going to the US market, he personally thinks there are three reasons.

First of all, the United States is the largest capital market in the world in terms of scale. In terms of liquidity, the US capital market is the best market in the world, and the investors in the US are widely distributed. There are many institutional investors as well as individual investors.

Many industries can get a higher valuation level because of the second factors listed in the US.

Finally, going to the US market will help the company in developing overseas business.

According to Yang Ge, in the next few years, private enterprises in China will still be the main force in the US market, and a large number of private enterprises need to go to the US market.

A number of enterprises are put into action.

It is understood that a number of Quanzhou enterprises have successfully listed in the United States.

In October 30, 2009, Lin Shui pan, President of HDL (China) Co., sounded the bell of the listing on the NASDAQ trading hall of the United States.

Prior to this, the Quanzhou based Jinjiang Cheddar enterprise, Windrace, owner of Xinlong brand and Acquiro invested by new horizon capital, announced the reverse takeover of the 2020 China Cap Acquiro of the US listed company and renamed it Exceed.

Since October 20th, Exceed has traded on the NASDAQ with "EDS" stock code.

It became the first Chinese fast moving consumer goods manufacturer to enter NASDAQ.

When asked by reporters why he was listed on Nasdaq, Lin Shui pan explained that the NASDAQ is a world-famous financial center, which is not only widely distributed in the market, but also mature in its operation mode, attracting investors from all over the world.

As the first domestic fast moving consumer goods company to enter Nasdaq, it will be widely concerned by the financial market, and will provide a great help for the future development of the company.

Many enterprises in Quanzhou are involved in traditional industries such as textile, clothing, footwear manufacturing, food and so on, with a high degree of industrial concentration.

According to Yang Ge observation, over the past year, Quanzhou enterprises have shown strong interest in going to the US and Europe. He said: "after the financial crisis, some Chinese enterprises are actively brewing out of China and launching the international development strategy. Among them, some enterprises represented by Fujian and Zhejiang want to expand the overseas market through the takeover and merger action, and the acquisition of famous brands in Europe and the United States is one of the routine actions of these enterprises.

With this trend, enterprises will have more interest in listing in Europe and the United States.

Because in the process of acquiring and merging foreign brands, there are great differences between the East and the West in the process of acquiring and merging foreign brands. If it is not a standardized listed company, it is still difficult to control foreign brands through the existing cultural background and management system of domestic family businesses.

By listing overseas, Chinese companies are more likely to be accepted by foreign companies in the process of takeover. "

There are advantages of spring enterprise listing to the United States

In addition, as far as the current situation is concerned, there are quite a few enterprises in Quanzhou sporting goods and shoes and clothing enterprises listed in Hongkong. As a highly concentrated industry in Quanzhou, the challenge of listing the same industry in Hongkong is increasing.

Yang Ge said that when the new spring companies want to go public in Hongkong, they must think more about how to differentiate themselves from those who have already been listed in Hongkong and convince investors to invest in them.

As for the US market, traditional industries such as shoes and clothing are still scarce in the market, and American investors are always optimistic about China's consumer goods industry.

According to Yang Ge, the listing of enterprises in the United States takes about 1 years from preparation to listing. From submitting materials to listing, it only takes 3 to 6 months. Compared with A shares, the time taken for listing in the US is much shorter, which reduces the hidden costs of capital, time and manpower input in the process of listing.

At the same time, the overseas capital market is more conducive to the two financing of enterprises, which is also one of the reasons for the keen interest of the listed companies.

Finally, Yang Ge revealed that under the background of strong interest and willingness, there are now many Quanzhou enterprises preparing for listing in the US.

"Although the pace of listing in the US has just begun, those successful companies listed in the US will bring a good example to the latecomers."