The Bureau of Commerce and Finance of the Beijing Economic and Technological Development Area (BDA) has been actively engaging in frontline work and implementing the "enterprise service steward system" in response to the needs identified during regular monitoring of enterprise services, taking proactive steps.
They invited experts from prominent stock exchanges like the Shanghai Stock Exchange, Shenzhen Stock Exchange, Hong Kong Stock Exchange, and the New Third Board company share transfer to visit and research potential IPO companies in the BDA. This initiative helps resolve IPO-related challenges, provides tailored improvement advice, and establishes a comprehensive mechanism to expedite the IPO process.
During the research, it was learned that excessive marketing costs have become a major issue affecting the companies' listing. The Bureau of Commerce and Finance and relevant experts suggested that enterprises effectively reduce marketing costs, and improve financial management systems to prepare for their IPO. For companies with challenging financial performance in a specific year, delaying the IPO application for a year was recommended.
Moreover, businesses in need of patent support during the IPO process were advised to collaborate with professional institutions to expedite patent applications, ensuring compliance with all IPO requirements. A director of the bureau confirmed that they would continue addressing these concerns to assist companies promptly.
To explore and nurture potential enterprises, various measures have been employed, including open solicitations, research meetings, recommendations from industrial parks and investment institutions, tracking via news outlets, and issuing incentives to support listed companies. These strategies have contributed to incubating 57 potential IPO enterprises in the BDA during the first three quarters of the year, expanding the inventory capacity from 43 enterprises last year to 100.
Efforts have been made to facilitate the listing process by inviting the Shanghai Stock Exchange, Shenzhen Stock Exchange, New Third Board companies, China International Capital Corporation (CICC), and other securities companies and intermediaries to provide customized guidance and services to companies in the incubation process. This tailored, demand-driven service approach has opened a green channel for enterprises looking to go public, resolving their most pressing needs and supporting their path to IPO development.
Since the beginning of the year, the BDA has successfully ushered four enterprises to the stock market, completing and doubling the annual task ahead of schedule while doubling the number of incubated potential IPO enterprises.
As of now, the BDA boasts 28 listed companies with a total market value of approximately 3.6 trillion yuan ($492.06 billion), and 38 New Third Board enterprises with a total market value of around 8.6 billion yuan. The capital market has significantly served the development of the real economy in the zone.
Next, the Bureau of Commerce and Finance is set to intensify visitation and research frequencies, gain deeper insights, and include more high-quality enterprises that express the intention and ability to go public into the incubation pool. This approach will ensure enterprises receive personalized, demand-driven IPO services, fostering their growth.