Presentation is loading. Please wait.

Presentation is loading. Please wait.

Confidential and for internal use only1 Shanghai Equity Exchange: Shortcut for SMEs to Flourish in Chinese Market.

Similar presentations


Presentation on theme: "Confidential and for internal use only1 Shanghai Equity Exchange: Shortcut for SMEs to Flourish in Chinese Market."— Presentation transcript:

1 Confidential and for internal use only1 Shanghai Equity Exchange: Shortcut for SMEs to Flourish in Chinese Market

2 China: The Economic Leader Confidential and for internal use only2 China GDP expands exponentially since 2000A Robust Personal Income Growth Boosts Personal Consumption 2002-2014

3 Unprecedented Business Opportunities in China Confidential and for internal use only3 Future GDP Expansion -In 2030, U.S. economy size will be $25 trillion. -China GDP now $7 trillion and expected to be $22.2 trillion in 2030. -China GDP will expand $15 trillion -$15trillion is more than the size of Japan combined Germany economy now. Expected GDP (Trillion) in 2030 Grey Area = Current Green Area = Expected

4 Confidential and for internal use only4 Funding Platform China Securities Regulatory Commission(CSRC) aims to - Internationalised China’s capital market - Thus, promoting SEE to be a platform for SMEs to reach international funding One Belt One Road - Outlined by President Xi Jingping in 2014 - Drive trade co-operation for China and nations along Maritime Silk Road such as Thailand, Laos and Myanmar. - Enterprises in South East Asia to gain listed position in China will gain first mover advantage China: Emerging Market not to Miss

5 Tight Trade and Economic Ties TH and China Thailand’s Largest Importer In 2014, Thailand has exported over USD 76.74 billion to China, 26% of Thai’s total export value (IMF). China-Thailand FTA 2003 China and Thailand signed FTA in 2003, allowing 188 types of fruits and vegetables to export to China with zero tariffs. Confidential and for internal use only5

6 What is SEE? Shanghai Equity Exchange or SEE Founded in 2010 with the approval of, State Council, China Securities Regulatory Commission and Shanghai Municipal Government Shanghai government as the major shareholders of SEE (31% holding) Aimed to be Nasdaq of China Confidential and for internal use only6 Stock ExchangeTotal Listed Companies SEE4,967 SSE1,085

7 For Who? WHO: Any SMEs with transaction related to China or Chinese business development story Especially but not limited to: 1. IT, internet, software, O2O, etc. 2. Financial service 3. Aesthetic, holistic medicine, integrative medicine, medical services, Spa products, herbs and spices, etc. 4. Alternative energy 5. Biotechnology 6. Processed food especially Thai food, F&B 7. Childcare and elderly care 8. Creative economy, value-added, cultural, innovative products and services Confidential and for internal use only7

8 SMEs Shortcut: CHEAP EASY FAST Top three attractions to encourage enterprises to be listed 1) Cost effectiveness for SMEs; 2) Simple listing procedures for foreign enterprises; 3) Fast track to achieve recognition and opportunities for equity financing Confidential and for internal use only8

9 SMEs Shortcut: CHEAP EASY FAST PR & Marketing Short-cut Listing Status  Credibility  PR & Marketing  Business Expansion SMEs listing in SEE will receive a listing code to be shown on company brochures, name cards, advertisements, etc. Since SEE is backed and owned by Shanghai Government, companies with this listing code then have high credibility. Consequently, it is easier for listed companies to meet new clients, business partners, suppliers and collaborates in new business projects The higher success in business matching, the higher chance for companies to expand their business in China and elsewhere. Confidential and for internal use only9

10 SMEs Shortcut: CHEAP EASY FAST Confidential and for internal use only10 Fund Raising Short-cut Listing Status  Credibility + Benefit from Fund Raising Channel  Business Expansion Being listed = company is tightly screened by both recognized sponsor and SEE. Implication = company has good governance, well established business development plan Listed companies can enjoy “members only” benefits such as business matching seminars held by a sponsor firm linking listed companies to potential investors Agreed transaction through brokers for shares traded in secondary market Higher chance to succeed in equity, bond placement Higher chance to get bank loan and credit line due to credibility.

11 Why “NOW” for Thai SMEs? Listing in SEE is now very popular, both Chinese and foreign companies BMI now prepare 30 Japanese SMEs to be listed  SEE will raise requirement soon to lower the no. of CO. Now companies from Singapore and Malaysia are preparing These SMEs have the same market capitalization size and are also in the same industries If Thai SMEs do not act fast, these SMEs will take the first mover advantage  Small piece of pie left for Thai SMEs. Confidential and for internal use only11

12 SEE: Steppingstone to HKEx, World Gateway HKEx = world leading financial hub, is eyed to be the listing destination However, listing in HKEx have higher standard of requirements Listing in SEE helps companies to be ready because 1.Improve corporate governance, business development, etc. due to the requirements of SEE and competition among other listed companies  become more prepared to fulfill HKEx requirements 2. Credibility  get equity finance and higher chance of debt finance + business partnering 3. Fund raised for business  Business expansion and has sufficient capital for HKEx 4. Securing more supports from Chinese government  doing business easier + helping to build network Confidential and for internal use only12

13 SEE Foreign Listed Successful Case Blanc-(SEE 203857), listed since 2015, paid up capital RMB 1 million A premium eyelash extension beauty store from Japan Offer one stop tailor made eyelash beauty treatment to customers over the world, including Japan, Thailand, Vietnam, China, Hong Kong and Singapore Confidential and for internal use only13

14 Blanc successfully expanded its business by cooperating with AEON Store (984 HK), after being a listed company in SEE Confidential and for internal use only14 The first eyelash branch in Aeon’s Wuhan store SEE Foreign Listed Successful Case

15 Confidential and for internal use only15 Advertisement on official website of AEON Store Weibo SEE Foreign Listed Successful Case

16 Shanghai BMI Funds Management Confidential and for internal use only16 An experienced sponsor which successfully promoted 188 companies to be listed in SEE Capital raised after listed over RMB 50 millions A listed company in E board since Feb 2015 Sponsor code BF0047

17 Q&E Board Steps and Timeline Confidential and for internal use only17 ProcessE Board (6 months)Q Board (4 months) Company registration in HK & Shanghai (if needed)Yes Company structure reformYesNo Sponsor AppointmentYes Due diligenceYesNo Company’s assessment by a sponsorYes Sponsor submits application to SEEYes Submit a share registration detail + “Share Transfer Prospectus”, “Articles of Association”, “Audit Report” and “Legal Opinion YesNo SEE assigns stock codeYes Information disclosure on authorized websiteYesNo Listing ceremonyYes

18 Thank you Confidential and for internal use only18

19 END OF PRESENTATION Disclaimer: BMI Group has made every attempt to ensure the accuracy and reliability of the information provided on this update. However, the information is provided "as is" without warranty of any kind. BMI Group does not accept any responsibility or liability for the accuracy, content, completeness, legality, or reliability of the information contained on this update. Confidential and for internal use only19


Download ppt "Confidential and for internal use only1 Shanghai Equity Exchange: Shortcut for SMEs to Flourish in Chinese Market."

Similar presentations


Ads by Google