Related News

Home » Business » Finance

Firms ready for launch of GEM

NEARLY 20 high-tech companies in Shanghai's Zhangjiang High-tech Park are planning to apply to be listed on the country's upcoming Growth Enterprise Market, officials at the park said yesterday.

The companies, involved in the pharmaceutical and electronics industries, have made preparations for application and are competing to become the first batch of companies to be listed on the board as early as August.

The GEM is for smaller, cash-strapped technology companies that show solid growth.

"It's always difficult for our company, without real estate or huge equipment, to get loans from banks," said Liu Wei, operating director of Huaya Microelectronics Co Ltd, a company set up in the park in 2001.

"Listed companies find it easier to get loans as banks believe there are fewer risks in lending money to listed ones with a good reputation, compared to unlisted ones." Liu said.

Many companies also expect listing will help them retain professional staff, park officials said, with many companies promising to share equities among partners when they are first launched.

Nearly 80 companies in the park meet listing requirements, officials said. More than 40 are expected to sell shares to the public by the end of 2010, and nearly 20 of them are gearing up to be listed on the upcoming board.

China's securities watchdog released guidelines for the Growth Enterprise Market in March.

The regulator didn't reveal a launch date for the new board but Yao Gang, vice chairman of the China Securities Regulatory Commission, has hinted it could be in August.


Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.

沪公网安备 31010602000204号

Email this to your friend