HANGZHOU, China, Oct. 24, 2013 /PRNewswire/ -- At the press conference celebrating the first anniversary of the launch of Zhejiang Equity Exchange's Innovation Enterprise Board on October 18, the first group of 475 companies that are officially listed on the newly launched board were announced. As one of the leading technical innovative firms in China's transmission sector, Zhejiang Kingland Transmission Industry was named as one of the firms included in the first group of companies, with a stock ticker symbol of 851126.
The launch of the Innovation Enterprise Board, an exchange mainly listing service limited companies, will lead to an expansion of direct financing channels for medium, small and micro enterprises, especially those innovative and technology-oriented companies with core competitiveness, enabling more companies to get access to capital markets in a cost-efficient manner.
Most of the listed companies on the board are technology-oriented firms with core competitiveness, leading agricultural firms and those with well-established trademarks. The listing of Zhejiang Kingland Transmission Industry demonstrates that more limited companies and partnerships may set foot in capital markets first without first needing to be incorporated, accelerating the pace at which companies can get access to capital markets. After listing on the Innovation Enterprise Board, companies may choose the level of information they wish to disclose according to their needs and their development phases. In addition, listing costs to get on the Innovation Enterprise Board are relatively low. Except for a one-time charge registration custody fee of 5,000 yuan (approx. US$825) and annual fee of 2,000 yuan (approx. US$330) per year, no other fees will be levied. The registration custody fee will not be levied in 2013 and the annual fee will not be levied in both 2013 and 2014. Companies may choose to be listed on the Innovation Enterprise Board without needing a recommendation an external member.
According to Sun Yongxiang, chairman and general manager at the Zhejiang Equity Exchange, for companies listed on the Innovation Board, the center will create a wide array of financial instruments according to the actual needs of the small and medium-sized firms as well as making sure the instruments match the characteristics of regional markets so as to enhance the ability of the instruments to meet every company's financial needs. The exchange will put in place member organizations who can provide various financial services, with bank financing, equity financing, private debt financing, an equity trusteeship exchange, joint-stock reform and prospecting for companies to list on the board as high priorities. Eligible investors can transfer shares of companies listed on the Innovation Enterprise Board, as well as purchase financial instruments issued by the listed companies, such as preferred shares and private debt.The successful listing on the Zhejiang Equity Exchange's Innovation Enterprise Board brings expanded financing channels of Kingland Transmission and represents an innovative initiative for Kingland's capital raising efforts. A successful listing helps improve a company's capital structure and assures the firm's stable development, as well as lays a foundation and paves the way for the company to list on the "New Three Board", increase the size of a targeted stock issue, raise the company's credit rating and help a company get faster financing.