Chinese Enterprises Attracting Overseas Capital at High-tech Fair

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Last updated at: (Beijing Time) Monday, October 14, 2002

Chinese Enterprises Attracting Overseas Capital at High-tech Fair

Representatives of eight stock exchanges located in Singapore, Australia, Britain, Japan, America and Hong Kong are attending the fair, trying to attract booming Chinese small and medium-sized enterprises (SMEs) and private companies.

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The on-going China Hi-Tech Fair 2002 in Shenzhen has offered opportunities for overseas capital markets.

Representatives of eight stock exchanges located in Singapore, Australia, Britain, Japan, America and Hong Kong are attending the fair, trying to attract booming Chinese small and medium-sized enterprises (SMEs) and private companies.

China's potential economic growth and promising market are luring overseas stock exchanges to seek clients in China, said Yang Hanpeng, a lawyer entrusted by the American Stock Exchange toseek future Chinese clients at the fair.

A larger number of American investors are looking to the flourishing Chinese enterprises because of the depressed American stock market, especially the performance of NASDAQ, the board for growth enterprises, Yang said.

Zhu Xiaojian, Asia Pacific head of the international business development department of London Stock Exchange also conveyed her desire for Chinese enterprises to be listed in London, saying the London Stock Exchange has always been interested in developing cooperation and relations with the Chinese securities industry and enterprises.

Some Chinese enterprises are listed on the London stock market and 110 enterprises from China's mainland and Hong Kong are trading on the London market with transactions worth 60 billion US dollars in 2001, Zhu said.

Ang Swee Tian, president of the Singapore Exchange LTD said his exchange is an ideal partner for growing enterprises seeking to raise capital.

The market-oriented listing requirement and sound legal system of the Singapore Exchange are attractive for SMEs, Ang said.

At a forum during the hi-tech fair, Brendan O'Hara, the representative from the Australian Stock Exchange also made a speech entitled "Listing in Australia --access to a capital market of unequalled efficiency, reliability and integrity in your own time zone".

A large number of Chinese SMEs and private enterprises need capital for further development and form a huge market for investors, said Liu Weihua, executive president of China Resources Investment Management Corporation Limited.

Liu's corporation offers consultation on listing on overseas stock exchanges for Chinese companies and management suggestions as well as venture investment.

The key to win in the competition with coming foreign institutional investors and intermediary agencies is to offer the appropriate service to local enterprises, Liu said.

Chinese enterprises are again showing enthusiasm for listing on overseas stock markets nowadays, indicating the speed-up of the Chinese business environment's gearing up to international practices since China's entry to the World Trade Organization, said Zhou Chibin, an executive from the American Appraisal Hongkong Limited.

Over the next three to five years, Chinese enterprises should try hard to become familiar with the rules of international capital market at an early date and learn to use foreign funds to develop themselves, Zhou said.

Hong Kong, as the main capital market for Chinese enterprises, has raised about 100 billion HK dollars for Chinese inland enterprises, statistics show.

Over 1100 investors have come to the China Hi-Tech Fair 2002 which began Friday. They included 260 overseas investors with the number topping the previous four annually held fairs.

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