From "Cold Shoulder" To "Listing Fever": A Major Turning Point In Wenzhou's Private Capital Market

In 2007, Wenzhou's private entrepreneurs who invested in the market were famous, but in the capital market for many years, the private entrepreneurs in Wenzhou contended for "crowded" late listed trains: following the successful listing of two private enterprises such as Rayleigh group and Huafeng spandex in the domestic and international market, and realizing the breakthrough of zero listing of Wenzhou private enterprises, this year, two enterprises of Huayi Electric and reporting birds have returned to the market.

At present, the echelon of Listed Companies in Wenzhou has been formed, and more than 10 enterprises are preparing for the listing.

According to the information provided by Wenzhou finance office, according to incomplete statistics, there are more than 50 listed companies.

The Wenzhou municipal government expects that by 2010, the total number of listed enterprises in Wenzhou is expected to reach 30, and the Wenzhou plate with regional economic characteristics will be formed in the stock market.

Wenzhou, once regarded as the "insulator" as the market place of China's private economy, was once regarded as an "insulator" by the outside world. Before 2006, there was only one listed company in Wenzhou.

The same province has more than 40 listed companies in Hangzhou, and 20 listed companies in Ningbo and Shaoxing. The pace of listing of private enterprises in Wenzhou is obviously lagging behind.

Professor Ma Jinlong, a local economist who once held the post of director of the Wenzhou Municipal Commission for reform and development, said that Wenzhou has strong private capital, convenient financing for private enterprises, "no shortage of money" and "no need to go to the stock market to collect money". This is one reason why Wenzhou private enterprises and capital markets have been "keeping distance".

In addition, because most of the private enterprises in Wenzhou are family businesses, they worry that the restructuring of the stock will affect the family interests and the high cost of listing. The pace of Wenzhou private enterprises listing is very slow.

"Listing is a process of forcing yourself to spit out the word" difficult to hide ".

Chen Dexin, chairman of the southern investment group, also admitted that "private enterprises with a majority of family management in Wenzhou have complicated management loopholes. Listing means financial disclosure. This is what many enterprises are worried about."

Wang Zhentao, chairman of AOKANG group, said that the concept of some entrepreneurs in Wenzhou has not changed, especially in private enterprises. They fear that the enterprises they are working hard to build will become public, and the brand is not their own.

The "demonstration effect" has greatly changed the concept. However, on the other hand, Wenzhou private enterprises have superior "listing conditions".

According to the statistics of Wenzhou Municipal Bureau of statistics, there are 5757 Enterprises above Designated Size and 29 enterprises among the top 500 private enterprises in China.

According to the relevant people, objectively speaking, the large enterprises in Wenzhou have gone to the "joint point" of qualitative change, and it is difficult to guarantee the rapid development of enterprises by relying solely on traditional private financing and bank mortgage loans to obtain funds.

After many efforts, in July 2004, Ruili Beijing Great Automotive Components Company Limited successfully purchased its shell overseas and officially listed on the NASDAQ in the United States, which fired the "first shot" of overseas listing of private enterprises in Wenzhou.

In August 16th this year, Wenzhou private enterprises reported the bird clothing Limited by Share Ltd listed, the Wenzhou municipal government organized more than 30 key enterprises to go to the scene to observe.

On the opening day, the stock price jumped 45 yuan, and the issue price of the stock was 12.6 yuan, and the total market value rose from 1 billion 200 million yuan to 4 billion 320 million yuan. Some of the "bosses" of the Wenzhou saw "silly". Some even claimed that they should take out a calculator to figure out how many pairs of shoes or clothes they could sell to earn that amount of funds. Many observers said they would go back to the enterprise immediately and change the system and strive for listing.

Zheng Chenai, President of the Wenzhou clothing trade association, said that after the listing of the wedding birds, the Wenzhou clothing industry, which was indifferent to the stock market, caused a big stir. The listing became the most concerned topic of many enterprises.

Other Wenzhou businessmen could not sit still - Qian Jinbo, who made shoes, plans to put the red dragonfly on the market. Zhou Chengjian, the chairman of the United States, who is the founder of virtual operation, was also listed in Hongkong. The largest CHINT electric appliance company in the mainland is planning to list in the A share market next year.

The change of the concept of development of private enterprises brought about by the "demonstration effect" has ignited the "listing fever" in Wenzhou.

Wang Jianman, Secretary of the Wenzhou municipal Party committee of the market intermediary, said that listing is like adding a high-powered "engine" to enterprises, which has injected powerful impetus to the sustainable development of enterprises and leaping development. Wenzhou should take the listing of enterprises as an important way to create a new "Wenzhou model" to achieve Wenzhou's "third stride".

The Wenzhou municipal government is also encouraging the listing of private enterprises in Wenzhou. It has promulgated the "opinions on cultivating enterprises to list and supporting the development of listed enterprises", and stipulates that enterprises will be listed on the market, or the backdoor listing will be carried out, and the listed companies will be registered to Wenzhou. The same level government will give enterprises two million yuan reward. At the same time, the government stipulates that the government will give preferential treatment to the land used for restructuring and the listed companies in terms of land use and tax revenue, and so on. The government of the city of Wenzhou will also be encouraged to move to Wenzhou.

With the "hot listing" of Wenzhou enterprises, a market share service market with billions of yuan or even tens of billions of dollars in market share is brewing in Wenzhou.

In October 23rd this year, representatives from Hongkong investment promotion agency and HKEx arrived in Wenzhou to promote the more than 100 well-known entrepreneurs in Wenzhou.

For enterprises to make financial packaging, capital operation, listing and listing, investment companies are becoming the "pushing hands" behind the listing of SMEs in Wenzhou.

The business scope of the newly established Wenzhou Tian Yin investment advisory company limited only locks one target: to be a listed company.

Listing is a process, rather than a result, "listing, so that Huafeng completed the pition from family businesses to modern public companies."

Turning to the benefits brought by the listing, You Xiaoping, chairman of the board of directors of Huafeng Group, said.

"After the listing of enterprises, some doctoral and postgraduate students are more willing to come to work in our company."

This is the feeling of Chen Daorong, chairman of Huayi Group.

"Enterprise listing, allowing all aspects of enterprise management to be standardized, including employee benefits, at the same time, it also builds a competitive platform for enterprises and improves the credibility of enterprises."

Wu Zhize, chairman of the news bird group, said: "listing is a process, not a result.

After the listing, there will be many changes in the management and operation of enterprises, but the development of enterprises will not change at all, otherwise they will be willing to sacrifice their needs.

Chen Jiyi, director of the listing Office of Wenzhou listed company, pointed out that listing is not for the purpose of "collecting money". Many private enterprises gradually realized that entering the capital market can introduce strategic investors, attract more talented people to join, control more resources, manage more standardized, and make enterprises bigger and stronger. The most effective way to gather many resources is capital operation.

Wang Zhentao, chairman of AOKANG group, believes that if Wenzhou's private economy is to carry out industrial restructuring, improve corporate governance structure and enhance corporate social image, listing is an important way.

But in the face of the phenomenon of Wenzhou private enterprises waiting for listing in bulk, Wang Zhentao also has his own "cold thinking": being able to go public does not mean a successful enterprise. Listing is only an internal requirement for managing internationalization and brand internationalization. If it can meet these requirements, it will be no harm to be listed.