Financing Alternatives for Chinese Small and Medium Enterprises: The Case for a Small and Medium Enterprise Stock Market

Hung Gay Fung, Qingfeng “Wilson” Liu, Jot Yau

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Abstract

<div class="line" id="line-19"> <span style='color: rgb(28, 29, 30); font-family: "Open Sans", icomoon, sans-serif; font-size: 16px;'> Financing alternatives for small and medium enterprises in China are discussed in the present study. In particular, we analyze the significant changes and developments in China s &ldquo;second board&rdquo; stock market. China s extensive network of regional assets and equity exchanges, which were set up to facilitate private equity transfer, and non&hyphen;performing loan transactions seem to partially fill the void for small and medium enterprises, which cannot easily obtain approval for listing on the stock exchanges. Foreign investors can identify investment opportunities in non&hyphen;listed domestic state&hyphen;owned and private businesses through these regional assets and equity exchanges. At the same time, foreign stock markets are now attracting the young Chinese enterprises to list their stocks on their exchanges. </span></div>
Original languageAmerican English
JournalChina & World Economy
Volume15
StatePublished - Feb 5 2007

Disciplines

  • Business

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