Overseas Capital Nuggets China SME

China's small and medium-sized enterprises will be at the "doorstep" docking International Investment Fund, is in the middle of the preparations for the 2010 Walt Financial Summit will be held in Shanghai in April.　　More than 300 companies from the United States, Europe and other investment institutions to wait for China's enterprises to go Abroad roadshow practice, will be to the Yangtze River Delta, the Pearl River Delta, the Bohai Sea Economic circle looking for more than 100 Chinese SMEs, "one-on-one" investment docking.　　The attraction of the Chinese concept is short of money, which seems to be a curse for Chinese SMEs. Although the latest data from the central bank's survey and Statistics Division show that, in 2009, the major financial institutions and rural cooperative financial institutions, urban credit cooperatives and foreign banks, small and medium-sized enterprises RMB loans (including bills discounted) cumulative increase of 3.4 trillion yuan, small business loans grew 41.4% year-on-year, but for 10 million small and medium-sized enterprises　　, it seems to be a drop in the bucket.　　Although at the end of 2009, vigorous capital demand stimulated the final opening of the gem, but cumbersome procedures, qualification evaluation, the number of batches of the listing limit makes the gem into a medium-growth enterprises trading world. According to Zibin, chairman of the China SME Association, the financing channels for SMEs are very narrow, and direct financing accounts for only 2%,98% loans, some of which are banks, some of which are owned and some from private institutions.　　On the other hand it is alleged that more than 10 trillion of private capital is wandering in disorder.　　When China's banking industry is afraid of the high risk of small and medium-sized enterprises, why are these foreign institutional investors targeting Chinese SMEs? "The rapid growth and potential of China's small and medium-sized enterprises has long been the focus of global capital markets."　　Tim Watt, founder of the US Walt Finance Group, explained. It is understood that more than 3 trillion dollars have been withdrawn from the US stock market since the financial crisis and are looking for investment opportunities.　　And China's good economic expectations have convinced investors that China is definitely a "basket of eggs". The latest issue of UNCTAD's global Investment Trends Monitoring Report can also be corroborated.　　The report shows: In 2009, the global FDI plunged 39%, China is still the same as the 2008 to attract foreign investment, the world's second largest foreign investment. However, it is not the industry's SMEs can get the favor of foreign investment.　　New energy, clean technology, bio-medicine technology, auto parts, such as 7 of the most popular industry by institutional investors as the first choice, but also in the size of enterprises, growth speed, industry indicators have certain requirements.　　Curve listing or will be hot although overseas financing is not an easy task, SMEs are willing to let go, because the rebound in exports in the fourth quarter of 2009 has made them feel that 2010 should be good, which means that the demand for funds will become more inflated. Of course, not which companies can go directly to the NYSE Bell, especially for small and medium-sized enterprises, to overseas financing, curve listing Alsois the only way. "Small and medium-sized companies listed in the United States, mainly through the APO (Financing-type reverse acquisition).　　"Walt (China) CEO Zhang said.　　In fact, for China's small and medium-sized enterprises, APO is not a novelty. January 21, 2005, the OTCBB battery landed in the U.S. capital market, in association with the United States (the securities dealers of the U.S. regulated by the exchange of the nature of the market)　　Trading companies Medinacoffee exchange rate of 11.7 times times P/E to 17 million U.S. dollars, breaking the Chinese private enterprises in the OTCBB of the practice, and the Walt Consortium in less than 4 months to build the speed of financing has become a model for APO promotion. And since 2008, APO has already built up the momentum of IPOs (IPO) in the U.S. stock market.　　In 2008 years, for example, global companies have 43 of IPOs listed in the United States, but up to 184 through APO and reverse takeovers, of which 63 are Chinese companies. Especially in 2010, the revival of global capital markets has made institutional investors quite bullish on this approach. "Institutional investors in North American markets have never been so keen on North American listed Chinese companies, and the industry is confident that China will lead the post-crisis economic recovery and China's future development beyond other regions."　　"said Bayron Ross, chairman and chief executive officer of Roche Securities.　　Any transaction can be risky, and APO is no exception. As a result of the two-part process of reverse takeover and private placement, since the two transactions themselves do not require a broker to have a licence, the consequences could be disastrous without careful choice of intermediaries.　　And the enterprise itself has familiar with the business of the financial officer or supervisor also appears very necessary, otherwise, even if the success of the shell, but financing is not smooth, from the OTCBB market to the motherboard will also be quite weak. "Companies must have a professional on their side, and must be honest, but this is precisely the current many Chinese SMEs are facing common problems." "Zhang said.