(China Daily) Chinese small and medium-sized enterprises (SMEs) will be afforded more opportunities to get listed in the world's leading stock exchanges in the coming years thanks to their increased international presence.
Representatives from some of the world's top exchanges, including the London Stock Exchange and the American Stock Exchange, made the remarks during the First Overseas Listing Forum of the Pan-Pearl River Delta Region, which concluded on Wednesday in Guangzhou, capital of South China's Guangdong Province.
The forum, organized by the Hong Kong-based Sun Wah Media Group, aimed to provide Chinese SMEs with more knowledge of the listing requirements and processes of stock exchanges and the operational skills required in the world's financial markets.
The event attracted seven leading international stock exchanges and a number of international investment banks and intermediary service providers.
Jane Zhu, head of Asia-Pacific Region operations at the London Stock Exchange, said the exchange has attached more importance to the listing of small and medium-sized enterprises from China since it established an office in Hong Kong at the end of last year.
"Chinese enterprises are getting more involved in the international market and have established closer business ties with overseas companies, which enables them to get listed more easily in overseas stock markets," said Zhu.
A total of six Chinese enterprises are already listed in the London Stock Exchange, including Air China, which was listed last year, according to Zhu.
She said the listed Chinese enterprises had all performed well on the exchange, with their transaction volume topping US$30 billion last year.
But Zhu suggested SMEs in China should pay more attention to the stock exchange's alternative investment market (AIM).
"The AIM provides less strict requirements," Zhu said.
Five Chinese SMEs have already listed on the London Stock Exchange AIM, and a number of SMEs based in the Pearl River Delta region are expected to get listed soon, according to Zhu.
Amy McQuade, the American Stock Exchange's vice-president for equity sales, also expressed a strong interest in the listing of Chinese SMEs.
The greatest interest outside the United States in terms of listing on the American Stock Exchange currently comes from China, said McQuade, adding that many US investors currently have a great interest in Chinese companies.
Five Chinese companies are already listed on the exchange, with four listed last year, all through reverse mergers, McQuade said.
A total of 12 Chinese firms, engaged in sectors such as technology, pharmaceuticals and natural resources, have applied for listings on the exchange, with 12 more expected to do so in the next quarter, she said.
The American Stock Exchange focuses on companies with middle-market capitalization, ranging from US$200 million to US$1 billion.
McQuade suggested Chinese companies intending or planning a listing on the exchange work with lawyers, investment banks and auditors as soon as possible in order to understand their choices, and the pros and cons.
They also need to acquire the skill of presenting themselves before US investors, she said.
Chinese companies need to bring themselves in line with international standards in corporate governance before seeking an overseas listing, said Jonathan Choi, chairman of the Hong Kong-listed SW Kingsway Capital Group.