The 6th China International Finance Forum was hold in Shanghai Pudong on October 24th to 25th 2009. The theme was on economic growth and financial transformations under financial crisis. Many financial regulatory authorities’ officials, banks, PE funds, financial service agencies, investment banks, security companies and high-growth enterprises as well as financial experts attended the meeting.
Under invitation from local organizer, Chief Capital’s Dr Hu Cheng attended the meeting and made the keynote speech. Dr Hu pointed out that China’s Growth Market has lower listing standards than the NASDAQ market. But the companies listing in China’s Growth Market trend to raise capital through IPOs, and so the money is used mainly in expanding productions. By contrast, the re-finance capability in NASDAQ is very strong, companies are more focused on the firm’s strategic developments within the industry, to improve operation mode by M&A and to expand market shares. Also, China’s Growth Market is not maturate or well regulated, it has a long queue for listing. Under worldwide surplus in production capability, latter is better for firms’ developments, and is also easier to get investors interested.
In the forum, Dr Hu also stated that the governmental guided funds can adopt the operation mode from venture capital funds, it has great potentials. And problems like low return rates or even zero returns due to imperfection of the system can be coped with through co-operation with investment banks and other financial institutions that are versed in PE. |
