The scientific and technological innovation has become the strongest driving force of development. It is the right time for Guangzhou to accelerate innovation by making good use of capital.

 

As of December 23, a total of 201 enterprises in Guangzhou newly listed on the New Third Board, increasing the total number to 345. It is worth mentioning that the enterprises in Guangzhou listed on the New Third Board have created several No. 1s of China. It topped provincial capital cities for the total number of enterprises listed on the New Third Board and the number of  newly listed on the New Third Board this year, and has 35 enterprises inscribed to the “innovation level” of the New Third Board, ranking the first of all provincial capital cities of China, and the net assets average of newly listed enterprises ranks the first in Beijing, Shanghai, Guangzhou and Shenzhen, and the listing growth rate reached 84.4%, higher than the national average 41%. All these numbers can prove the rise of “Guangzhou Board” on the New Third Board. 

 

Why does “Guangzhou Board” on the New Third Board rise? It is closely related to the support of Guangzhou to the scientific and technological innovation. Guangzhou has accelerated its efforts in building Guangzhou into a national innovation central city with international influence and an international innovation hub and continuously enhanced talent introduction, platform fostering and high-tech enterprises settlement, achieving obvious effect. Guangzhou attempted to increase the total number of high-tech enterprises to more than 3,000 this year, and to 6,000 four years later and the number of scientific and technological innovation enterprises to 200,000.

 

It is well known that capital is an issue that cannot be neglected for the development of scientific and technological innovation enterprises. In order to nurture the innovation soil, and help more innovation and startup businesses grow stronger, Guangzhou explored any possibilities to help enterprises solve the capital difficulties by taking various measures. For example, the city has made direct scientific and technological innovation funding support plans such as the “Little Giant” incentive plan which is the highest award in China. From 2015 to 2017, Guangzhou will input RMB6 billion in supporting the enterprises’ innovation, or one third of the total fiscal expenditures on science and technology of the same period. It introduced all kinds of venture capital investment and equity investment institutions and provided the market-based financing platforms. At present Guangzhou has more than 1,300 equity investment and venture capital investment institutions, with RMB300 billion assets under management, 13 times and 10 times, respectively, compared with that at the end of 2011. Guangzhou has made good use of the capital market. It has established the regional transaction platforms such as Guangzhou Equity Exchange and China Youth GEM to help enterprises financing directly. Guangzhou Equity Exchange is positioned at exploring the matching mechanism with the New Third Board. In September this year, Guangzhou Science, Technology and Innovation Commission initiated to establish Guangzhou Technology Enterprises New Third Board Development Promotion Council to provide one-stop services for small- and medium-sized technology enterprises on listing, investment and financing, policy interpretation and training activities. The rise of “Guangzhou Board” on the New Third Board is closely related to the voluntary instruction and support of Guangzhou to entrepreneurship and innovation.

 

Listing on the New Third Board not only provides a new financing channel for enterprises to introduce strategic investors and investment, but also introduces standardized enterprise management and lays a foundation for enterprises to grow stronger. Scientific and technological innovation has unlimited possibilities. These new enterprises may grow into “the unicorn” in the future. The innovation strength of “Guangzhou Board” on the New Third Board cannot be belittled. At the Innovation and Entrepreneurship Competition, 10 enterprises from Guangzhou won the first, the second and the third prizes, and six of them are listed on the New Third Board.

 

The scientific and technological innovation has become the strongest driving force of development. It is the right time for Guangzhou to accelerate innovation by making good use of capital.

 

Source: Translated from Invest Guangzhou, December 27, 2016