Open Governance
Sichuan Has 155 Companies Listed in National Equities Exchange and Quotations

  On March 1st, Chengdu Zhida Consulting Co., Ltd. was listed in National Equities Exchange and Quotations (hereafter shorted as NEEQ). By then, there have been 155 companies in Sichuan which have been listed in NEEQ. Sichuan ranks first in this aspect in Western China. When Chengdu Zuohang Internet Technology Co., Ltd., a common company, succeeded in enlisting in NEEQ, it has also shocked the market for the company has only 518,900 yuan as registered capital without real estate, land, trademark, and patent.

  Compared with the historical and large companies which have been listed in Shanghai and Shenzhen main board market, companies listed in NEEQ are mini with smaller registered capital and scale. But in the opinions of insiders, the innovation features of Sichuan companies listed in NEEQ should never be neglected, because these companies have outlined the new characters of Sichuan’s industries to some extend.

  In terms of trends: Small companies rush to list in NEEQ with full power

  Currently, Sichuan Changhong Livelihood Logistics Co., Ltd. in the charge of Changhong Holdings has been approved to list in NEEQ. This is the third subsidiary of Changhong Holdings to be listed on NEEQ. “The most outstanding features of NEEQ is high efficiency. This is the first step for many companies to enter into capital market.” Relevant responsible person from Xhuaxi Securities who is familiar with the business of NEEQ said.

  In sharp comparison with the slow expansion of Shanghai and Shenzhen stock market, NEEQ has been enlarged with full engine on. By the end of 2014, there are about 1,600 companies listed in NEEQ while now the number has surpassed 5,000. In 2015, there are 106 Sichuan companies newly listed in NEEQ and most of them are small ones with unimpressive registered capital, including Sichuan Shengdile Ecological Food Company and Huamei Dental and so on. “We have benefit from being listed in NEEQ, such as fast financing and advantages to achieve transformation and upgrading.” Mr. Yang Zhenzhi, founder of Laiye Company, said. According to the data provided by Sichuan Securities Regulatory Bureau, companies listed in NEEQ have attracted investment of 1.246 billion yuan in 2015. Many companies have achieved new momentum of development.

  What is notable is that on March 3rd, NEEQ required relevant institutes to make good preparations concerning technology for hierarchical information disclosure. Hierarchical information disclosure system has been regarded as an critical measure to improve the fluidity and influence of NEEQ. Many companies, including Laiye Company, will be embraced with more advantageous development environment.

  In terms of features: Information technology companies account for about one third, indicating innovation-intensive feature

  From the perspective of industry classification, mostly listed companies are from chemical industry, liquor, electric power, reshipment, building materials, agriculture and so on, all representing Sichuan’s traditional advantageous industries. But NEEQ outlines another vigorous Sichuan company group, namely from information technology, large consumption, new energy, new material and so on.

  Statistics show that among the companies listed in NEEQ, companies from information technology have accounted for about one third, including e-commercial platform companies such as Sousou E-commerce, Mimile Net and so on, computer game companies such as Yeyou Technology, Zhuohang Technology and so on, and livelihood service companies such as 517Na, Yunhui Aviation and so on. “Many companies are typically innovation and entrepreneurship growing business.” Mr. Deng Houlin, a local analyzer, held the view that these companies were just established in recent years with small scale but rapid growing speed. For instance, Zhuohang Technology, founded in 2011, has achieved comprehensive gross margin of 76.38% from January to April, 2015. The gross profit margin of Laiye Company has been over 55% in both 2013 and 2014.

  In terms of location: Chengdu companies account for 70% and the imbalance in location is more obvious than the main market

  Among the 113 Sichuan companies listed in Shanghai and Shenzhen Stocks, over 60% of them are from provincial capital, Chengdu, indicating location imbalance. While among companies listed in NEEQ, the location imbalance is more obvious. Reporter has accumulated that among 155 companies listed in NEEQ, 110 companies are from Chengdu, accounting for 71%. However, no companies from some 7 cities (autonomous prefectures) have been listed in NEEQ.

  "Over 70% companies listed in NEEQ are from Chengdu, which is closely related to Chengdu’s economic scales and innovation and entrepreneurship capacity.” Relevant responsible persons from Sichuan Securities and Futures Association said. Apart from Chengdu, Mianyang has 12 NEEQ companies, ranking second in Sichuan. Deyang has 4 NEEQ companies, ranking fourth in Sichuan.

  What should be noticed is that Guangyuan has 4 NEEQ companies but no companies listed in main board market. Moreover, Ya'an has 5 NEEQ companies, ranking third in Sichuan. “The prediction of NEEQ companies concentration is innovation. But local government and capital market ideas of companies are also crucial.” Analyzers think that companies in Guangyuan and Ya'an do not have attractive resource advantages. “We will grasp the policy and opportunities of NEEQ to continue to support Sichuan’s companies listed in NEEQ.” Relevant responsible official from Sichuan Securities Regulatory Bureau indicated to support cities to list potential NEEQ companies into provincial storage programs and coordinate with relevant provincial and municipal departments to release favorable specific measures of NEEQ.

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