Quanzhou Shoe Enterprises Are Expected To Welcome The Government's "Financing Feast".

At the 2008 Fujian Quanzhou venture capital and investment promotion conference held yesterday, more than 70 domestic and foreign Vc firms, venture capital advisory agencies and more than 300 small and medium-sized enterprises in Quanzhou gathered together to conduct face-to-face communication on financing issues.

Just like "long drought meets with rain", under the background of tight money and difficult financing, participants in the small and medium-sized enterprises have called the promotion a timely "financing banquet".

Venture capital brings new financing concept to financing. Many enterprises first think of bank loans, and there are various kinds of private lending.

But in fact, in recent years, due to factors such as monetary tightening, it has become increasingly difficult for enterprises to realize indirect financing from bank loans. Especially because of the lack of mortgage assets and the high cost of credit checking, the majority of SMEs are more difficult to get the favor of banks.

Most of the small and medium-sized enterprises in our city are engaged in traditional industries such as clothing, shoes and caps and toys. When it comes to private lending, they often earn 3 points interest, 4 points interest and even higher interest rates.

Venture capital has provided a new financing way for small and medium-sized enterprises.

Zheng Liting, deputy director of the provincial economic and Trade Commission, said that venture capital refers to the equity financing of venture capital institutions to start-ups with growth potential, providing value-added services such as entrepreneurial management and so on.

He said that the introduction of venture capital can not only solve the capital problems of enterprises, expand the scale of enterprise capital, but also improve the ownership structure of enterprises, improve the level of enterprise management and market competitiveness, and enhance the ability of independent innovation of enterprises.

"Banks are not only easy to lend, but also must be paid in a year or two, but venture capital is different. Their financing has the characteristics of no maturity, no return and no fixed dividend burden. The cost of the enterprise is only to sell part of the equity. On the other hand, these shares are part of the cake that comes out after the small cake is bigger, rather than directly cut from the original small cake."

He Jin, one of the Vc firms's senior investment managers of Shanghai Fuxing high tech (Group) Limited, told reporters that venture capital has brought direct financing opportunities to enterprises, which can make up for the shortage of loans from banks.

At the meeting, Li Wanshou, President of Shenzhen Innovation Investment Group Co., Ltd., it seems that venture capital is not only a shortage of funds for enterprise development.

"When venture capital becomes a shareholder, it can play a very important role in standardizing operation, formulating and implementing strategy, developing market and improving public relations."

He said that as a platform for cooperation in a nationwide or even international scope, the added value added effect of Vc firms can not be ignored, which will bring new financing ideas to enterprises.

Quanzhou has become a hot spot in the capital market. On the one hand, many small and medium-sized enterprises in Quanzhou urgently need a large amount of capital to break through the bottleneck of development. On the other hand, Quanzhou's abundant private capital and strong demand for corporate financing also make domestic and foreign investment institutions pour in.

Reporters have learned that, like this time, the investment and financing promotion conference, which is directly face-to-face communication between enterprises and venture capital organizations, is the first attempt, but the enthusiasm of participating parties is irresistible.

The small and medium-sized enterprises attending the meeting did not need to say that the number exceeded 300 in one go. What is unexpected is that venture capital companies include many elite from domestic and foreign industries, such as Keating, Lan Xin, Asia, Morgan, China National Flag holdings, IDG technology venture capital fund, Shenzhen innovation investment, Zhongke investment, Shanghai Fosun and so on, which are rich in capital and rich in operational experience. This brings many surprises to the participating enterprises, and the newly established local venture capitalists like Fujian JINDA, Xiamen torch and Fujian merchants (Zhangzhou) have considerable affinity.

"For investment enterprises, Quanzhou has great charm."

Li Wanshou told reporters that Quanzhou, a highly developed private economy, means amazing cooperation space for venture capital companies. In addition, Quanzhou has two advantages that other cities can not match: first, footwear, textile, chemical fiber, toys, clothing and other industries have formed a very perfect industrial chain, greatly reducing the cost of integrating upstream and downstream businesses; secondly, compared with many cities that focus only on one of the domestic or foreign markets, Quanzhou has done "two markets and two markets."

"Shenzhen innovation has also made several visits to Quanzhou before its introduction."

Li Wanshou said that at present, his company has followed up three or four excellent private enterprises including PEAK.

According to the introduction, venture capital exit includes selling stocks, pferring shares and leveraged refinancing. Among them, what most venture capital companies love is to sell shares in the two tier market after listing, so they also attach great importance to the potential of listed companies when they choose to invest.

Quanzhou enterprises that are in line with this point are not in the minority.

Reporters learned that at present, 5 enterprises in Quanzhou have entered the sprint stage, 3 companies have applied for guidance and record keeping, and 9 enterprises and intermediaries have signed agreements. 60 enterprises have started the process of restructuring and listing. So many "mature resources" have made Quanzhou a hot topic in the eyes of venture capital companies and intermediaries.

Government platform enterprises enjoy the "feast" in Quanzhou, which accounts for more than 99%% of SMEs and has a flexible mechanism and a strong market capacity. It has made important contributions to the sustained and healthy development of the industrial economy in our city, and its development difficulties in terms of capital have been highly concerned and valued by the municipal Party committee and the municipal government.

This investment and financing promotion conference is just a major move to promote the joint venture investment and small and medium enterprises, meet the financing needs of enterprises, and create a good business environment. It will greatly promote the construction of the Economic Zone on the west side of the Straits and the construction of the two leading areas.

The form of investment and financing promotion is the first time, but it is a precedent for similar actions to create a good financing environment for enterprises.

Reporters have learned that the Quanzhou municipal Party committee and the municipal government have always attached great importance to creating a good investment and financing environment for healthy growth of enterprises. Before that, they issued a number of opinions on further enhancing the level of development of the private economy, some opinions on supporting enterprises to go public, opinions on the use of capital markets to promote economic development, and Implementation Opinions on strengthening the construction of credit guarantee system for small and medium-sized enterprises, etc., and encouraged enterprises to make full use of capital markets to raise social capital, optimize resource allocation and develop industrial clusters.

Planted phoenix tree, attracting Phoenix.

Under the government's push, the charm of Quanzhou's "phoenix tree" grows day by day, and becomes a more active area of capital market utilization.

Up to now, the number of listed companies has reached 30, and more than 18 billion yuan has been raised through restructuring, capital raising, stock expansion and listing.

At the same time, the substantive support from the whole province has been improving.

The provincial finance department and the provincial economic and Trade Commission jointly issued the Fujian provincial venture capital guiding fund management implementation plan (Trial), which clearly stated that from this year, our province will set up the provincial venture capital guiding fund, which will arrange 30 million yuan a year, mainly for funding the establishment of venture capital investment platform, and actually investing in venture capital enterprises in Fujian enterprises.

Driven by this, the local venture capital industry, which is mainly based on private capital, is growing rapidly, and the financing channels for SMEs are becoming more and more open.

In the first half of this year, the number of venture capital companies registered at the provincial level increased from 1 at the end of last year to 8.

While opening up the "financing banquet", what problems should Quanzhou SMEs pay attention to?

Representatives of venture capitalists at the conference held that the core competitiveness, industry status and ranking of enterprises and whether the industry has sustainable development prospects are the main factors for investors to consider, so they should also work hard in these areas.

Besides, as one of the characteristics of traditional family enterprises, Quanzhou small and medium enterprises also need special attention in financial management and pparency.