Countdown to the opening of the Beijing Stock Exchange: Brokerage private equity is fully prepared, the industry is expected to open this month
After full-speed advancement in September, the Beijing Stock Exchange (hereinafter referred to as the "Beijing Stock Exchange") institutional framework was established, business rules were released, and the first network-wide test has also been carried out.
At the beginning of October, the construction of the Beijing Stock Exchange continued to accelerate, and the second network-wide test will be carried out on the 9th of this month.
All parties are intensively preparing, and the construction of the Beijing Stock Exchange has entered the stage of full sprint before the market opens.
"Regulations, technology, personnel, projects, etc. are all well prepared. The market generally believes that the Beijing Stock Exchange has the conditions for market opening." A NEEQ investment banker told a reporter from China Business News.
The pace of the market opening is gradual, how do all parties in the market prepare for the battle?
The reporter learned from brokers, private equity, companies and other parties that brokers are mobilizing investment banks, online finance (technology) departments, sales departments and other departments to prepare for the Beijing Stock Exchange from project contracting, system preparation, and account opening promotion; private equity is closely watching At the same time as the strategic placement of the select layer, the investment stage is moved forward, and the logic of early investment and small investment is clearer; some select layer companies have expressed optimism about the prospects of the Beijing Stock Exchange.
"It can be said that the countdown to the opening of the (Beijing Stock Exchange) market has now entered. We expect the opening and trading time to be at the end of October." Zhou Yunnan, founder of Beijing Nanshan Investment, told reporters, referring to the science and technology innovation board and the GEM registration system reform. The time interval from the test to the opening of the market is expected to be approaching after the two network-wide tests are over.
Multi-departmental linkage of brokers to prepare for the Beijing Stock Exchange
The establishment of the Beijing Stock Exchange has directly benefited securities firms. The market growth it brings will boost the income of securities firms' investment banking, brokerage, and other businesses.
The reporter learned from a number of securities firms that, at present, securities firms are participating in the construction of the Beijing Stock Exchange through multiple business lines and measures, including investment banking, investment research, investment, and brokerage.
In terms of investment banking, Wang Chenguang, managing director of the investment banking department of Pacific Securities, told reporters that in the past month after the announcement of the establishment of the Beijing Stock Exchange, his institution has promoted the relevant business of the Beijing Stock Exchange in various aspects, including personnel and business reserves.
"There has been a substantial increase in personnel recruitment, mainly for the recruitment of the Beijing Stock Exchange + NEEQ business, aiming to expand the scope and scale of the business, but the difficulty is also increasing because all companies are recruiting." He said.
Preparations also include: internal business seminars, research strategies, formulation and implementation; internal mobilization of branches, external business presentations, and promotion of business cooperation with multi-party organizations, etc.
The relevant person in charge of Southwest Securities said that with the establishment of the Beijing Stock Exchange, the market has become more heated, and the company has launched a comprehensive review of the new three-board project.
"Arrange special personnel to start and restart some reserved projects and stagnant projects, mobilize and tap the potential of delisted high-quality projects, sort out the high-performance subsidiaries of listed companies, arrange business teams in key areas for docking and landing, and implement a tracking and responsible mechanism based on the project." Express.
For the Net Finance (Technology) department and sales department, the relevant person in charge of Debon Securities told reporters that the technology department cooperates with the online opening function to realize product development, and, together with the sales department, makes full use of online and offline sales outlets, official websites, mobile apps, etc. Ways to effectively carry out investor mobilization work to ensure full coverage of potential investors.
"In terms of risk disclosure, our CBEX investor risk disclosure statement has been formulated in accordance with the CBEX's risk disclosure mandatory provisions." He said.
Private equity investment is early, and the logic of small investment is clearer
In addition to securities firms, there are also primary market investment institutions that are stimulated by the establishment of the Beijing Stock Exchange.
One of the goals set by the Beijing Stock Exchange is to cultivate a group of specialized and new small and medium-sized enterprises, and form a benign market ecology featuring high enthusiasm for innovation and entrepreneurship, active participation of qualified investors, and responsibility of intermediaries.
Early investment, small investment, and innovative PE/VC are expected to usher in greater development space and smoother exit channels.
In the view of private equity institutions, after the establishment of the Beijing Stock Exchange, multiple changes have taken place in the primary market, including the investment stage moving forward and valuation concerns gradually disappearing.
One is the issue of investment stage.
Zhu Weiyi, general manager of Power Capital, told reporters that the investment stage of his institution is shifting.
"(Investment) now all need to be changed, move forward, invest in the basic level and the innovation level." He said that his institution will continue to participate in strategic placements and block transactions at the select level.
A person from a private equity institution in Beijing told reporters that his institution focuses on hard technology investment. After the establishment of the Science and Technology Innovation Board, the investment stage will move forward, and this situation will continue after the establishment of the Beijing Stock Exchange.
Second, liquidity and valuation issues.
The above-mentioned private equity agencies also said that previously, due to the liquidity problem of the new third board market, the single exit path of the primary market was a major problem.
"After the establishment of the Beijing Stock Exchange, it is equivalent to dispelling this part of the primary market's worries, that is, the issue of how to invest in and exit." He said.
Liu Pingan, chairman of Jinchangchuan Capital, told reporters earlier that for investment institutions, one must solve the problem of how to withdraw after investing, and second, the problem of whether the valuation can be increased after investing.
"After the establishment of the Beijing Stock Exchange, I think it basically solved the two fundamental problems that plagued our investment in the NEEQ." Liu Pingan said.
Some selected enterprises expressed their optimism about the Beijing Stock Exchange.
Guoyuan Technology (835184.NQ) Secretary of the Board Shang Hongying told reporters that the establishment of the Beijing Stock Exchange will usher in unprecedented historical development opportunities for innovative small and medium-sized enterprises, and its market positioning to serve innovative small and medium-sized enterprises will greatly help small and medium-sized enterprises. Towards the capital market, usher in a stage of high-quality development.
Author: Zhou Nan