Gortune Investment Co., Ltd.

xkb.com.cn - On May 15, the Foshan 2022 Enterprise Listing Work Conference was held, where the Action Plan of Foshan for Promoting the Enterprise Listing Doubling Plan (2022-2026) (hereinafter the Plan) was announced, and the “Winging Action” for Foshan’s Enterprise Listing Doubling Plan was officially launched. The Plan aims to enhance the city’s capital markets from “focusing on quantity” to “strengthening quality” and then to “consolidating power”, further driving the transformation and upgrading of Foshan’s traditional manufacturing industry. The Plan sets three main goals and 15 specific action measures, aiming to double the number of listed companies within five years, reaching around 135 companies, and maintaining a total market value of listed companies above RMB2 trillion.

The number ranks first in the province

Foshan has a total of 72 listed companies, covering all five districts

Since the first batch of companies such as Midea Electric Appliances went public in 1993, Foshan’s capital market has continuously grown and expanded. In 2021, Foshan added 7 new listed companies, ranking third in the province in terms of new listings, achieving full coverage of all five districts. As of now, Foshan has a total of 72 listed companies, ranking first among provincial-level cities in Guangdong. Additionally, there is one company that has passed the review and is awaiting issuance, 11 companies in the IPO queue, 18 companies in the CSRC’s guidance records, and 254 companies in the reserve list.

At the conference, leaders from Foshan City and officials from the Guangdong Local Financial Regulatory Administration presented “Red Bull” commemorative gifts to the leaders of the 7 newly listed companies, including Shunkong Development, Fuxin Technology, LEARY New Materials, Dongjian Technology, Jushen Logistics, Shenling Environmental, and Sinostone.

Commemorative gifts are presented to the 7 newly listed companies in 2021 (Photo by Chen Yumo)

Party Committee Member and Deputy Director Wang Wenzhe of the CSRC Guangdong Office revealed, “Currently, Foshan has 47 A-shares listed companies, with 2 new companies listed this year, and their total market value exceeds RMB1 trillion, ranking first among provincial-level cities in Guangdong. Among them, enterprises with a market value of over RMB100 billion have achieved remarkable results driven by experts and leading enterprises. Meanwhile, Foshan has a rich reserve of resources, with 30 listed companies already registered with the CSRC Guangdong Office.”

The thriving listing work is the result of Foshan’s years of careful efforts. In 2021, Foshan actively played the overall role of the joint meeting on the utilization and development of the capital market, intensified the cultivation of the echelon of reserve enterprises, and accelerated the listing of key enterprises. Foshan’s five districts also made targeted efforts, and the listing work showed a positive development trend. Chancheng District included all listing reserve enterprises under district leaders’ supervision; Nanhai District promoted the integration of the financial and technology industries with multiple measures; Shunde District held the district’s annual enterprise listing conference at the beginning of the new year for six consecutive years; Gaoming District strengthened cooperation with the Guangdong Equity Exchange; and Sanshui District established a reserve list of over 100 listing-ready enterprises.

Three major goals and 15 measures

Aiming to double the number of listed companies in five years and maintain a total market value of over RMB2 trillion

At the key historical juncture of the “Two Centenary Goals”, the Foshan Municipal Party Committee set the strategic goal of “515” high-quality development, and Foshan formulated the Action Plan of Foshan for Promoting the Enterprise Listing Doubling Plan (2022-2026). At the conference, the “Winging Action” for the Foshan Enterprise Listing Doubling Plan was officially launched, aiming to enhance the city’s capital market from “focusing on quantity” to “strengthening quality” and then to “consolidating power”. The goal is to help enterprises establish modern corporate systems, expand direct financing scale in the city, and further promote the transformation and upgrading of Foshan’s traditional manufacturing industry.

The Plan specifies three major goals for the next five years, i.e., doubling the number of listed companies, improving quality, and consolidating power. By 2026, the number of listed companies in the city is expected to reach around 135; key industries with a market value over RMB100 billion will achieve full coverage of listed companies. The proportion of emerging and high-tech companies among new listings will exceed 40%, and the total market value of listed companies will remain above RMB2 trillion, keeping Foshan among the top in the country.

To achieve these goals, the Plan proposes 15 specific measures. These mainly include increasing attention to listing work, providing full-chain listing services, accelerating capital-driven growth in a target manner, and promoting high-quality development for listed companies. The assessment will focus on the completion of corporate shareholding reforms, the resolution of issues with listing reserve companies, and the implementation of the “three-one” investment mechanism.

Cai Wei, Director of Foshan’s Financial Work Bureau, explained that with the new era, Foshan’s approach to listing work has shifted. The focus has moved from supporting state-owned enterprise financing and the development of existing companies to leading the development of technology companies and encouraging innovative capital investment. The emphasis has also shifted from simply increasing the number of listed companies to using capital to reshape the momentum for local industrial transformation and upgrading. Therefore, Foshan’s listing work will also shift from fragmented services to full-chain accompaniment, from passive discovery to active cultivation, and from focusing on financing to focusing on the continuous innovation and development of enterprises.

Alliance between strong enterprises

Foshan signs agreements with Beijing Stock Exchange to empower high-quality development of enterprises

Listing work is a long-term, systematic project that requires collaboration from all parties. At the meeting, the Foshan Municipal Government signed agreements with the Beijing Stock Exchange, GDRH, Guangxin Group, Gortune Investment, and China Capital Market Institute to help Foshan form a “Foshan Segment” on the capital market that reflects high-quality development requirements. This will promote a high-level circulation of technology, finance, and industry, better serving the overall economic and social development of Foshan.

Foshan signs agreements with Beijing Stock Exchange, GDRH, Guangxin Group, Gortune Investment, and China Capital Market Institute. (Photo by Chen Yumo)

To guide the high-quality development of enterprises and cultivate more listing reserve companies, the Foshan Municipal Government has taken practical steps. It has collaborated with Shenzhen Capital Group, a leading domestic fund manager, to establish a manufacturing transformation and development fund with a total scale of RMB30 billion and an initial phase of RMB10 billion. This will guide more financial “vitality” into Foshan’s real economy and create a fertile environment for nurturing more high-quality enterprises.

Chen Ying, General Manager of the Guangdong (Foshan) Manufacturing Transformation and Development Fund, introduced the progress of the fund at the meeting. Chen Ying stated that the fund will empower enterprises across five major systems: industry chain resources, long-term capital investment, listing services, professional brand support, and industry research.

In addition, Foshan is actively promoting the investment attraction model of “state-owned capital leading, project implementation, equity exit, and circular development”, supporting municipal and district state-owned enterprises in setting up specialized investment funds and increasing investment in listing reserve companies. Cao Guodong, General Manager of Foshan Public Utilities Holding Co., Ltd., introduced the development blueprint of the “5885” industry fund. In accordance with the requirements of more scientific industrial layout and more localized investment direction, the company has expanded from managing 8 existing funds with a total scale of RMB5,322 million to a new structure consisting of two matrices and 8 funds. These efforts have increased the total fund size from RMB5 billion to RMB50 billion, creating a series of fund clusters for Foshan.

Foshan Municipal Party Secretary Zheng Ke, Foshan Municipal Deputy Party Secretary and Mayor Bai Tao, Foshan Municipal Standing Committee Member Ge Chengshu, Foshan Vice Mayor Zhou Zixiao, and other local leaders, along with Wang Wenzhe, Deputy Director of the CSRC Guangdong Office, Ni Quanhong, Deputy Director of the Guangdong Local Financial Regulatory Administration and other provincial leaders attended the meeting.