Previously, SMEs in China faced a multitude of hurdles to finance themselves whether it be limited access to capital markets or unfavorable bank loan terms. The NEEQ is enabling new areas in Chinese advanced production, technology access, and other sectors to finance their growth. This, in turn, allows investors access to many of the sectors analysts forecast as future drivers of the Chinese economic growth and transition.
F&Y Capital analysis and investment team specialize in recognizing pre-IPO (pre-NEEQ) companies poised for success with their future floatation. The firm is strategically placed in the hearts of Chinese ingenuity, maintaining not only a network deal flow opportunities, but also a reputation of openness and fiduciary responsibility for investors and investments.
companies to over 5,200 as of March 2016. Trading activity on the market has sharply increased over the past 18 months with the market posting a 53% gain in 2015. Participants in the market are comprised of Chinese fund managers, qualifies foreign institutional investors (QFII), renminbi qualified foreign institutional investors (RQFII), and individual investors. In order to curb speculative pricing bubbles, the CSRC requires an asset requirement of RMB 5 million for individual investors. The increased interest in NEEQ stems from the diverse investment strategies it enables.
Opened in 2006, the National Equities Exchange and Quotation (NEEQ), also known as “New Third Board” is China’s newest stock market. The NEEQ is an over-the-counter (OTC) market that provides greater depth of financing options for Chinese Mainland small-to-medium enterprises. The NEEQ is the only OTC exchange regulated by the China Securities Regulatory Commission (CSRC). Since 2014, the exchange has greatly expanded from 1,500