Xiamen tops Fujian province with 48 listed companies
CATL, a leading EV battery provider headquartered in Ningde, Fujian province, announced that it plans to raise up to 13.2 billion yuan ($2.1 billion) after being listed on Shenzhen's ChiNext start-up board, local media reported on Wednesday.
The move came after its IPO application was approved by the China Securities Regulatory Commission (CSRC), the country's security regulator in late March.
As of the end of March, the listed companies, with CATL counted in, in Fujian stood at 133, ranking the 7th nationwide.
Notably, Fujian, in 2017, witnessed a dramatic surge in its listed companies. Statistics show that a total of 25 companies based in the province got listed in the A-share market last year, more than the number of the previous three years combined, which registered merely 19.
The scenario could be largely attributable to local vibrant economic growth and the great incentives offered by the government, experts say.
In 2017, governments at different levels in Fujian rolled out a slew of policies and measures to support local businesses to get listed, as China has sought to normalize IPOs to improve financing efficiency and direct more money into the real economy since it suspended IPOs between July and November 2015.
Citing Fuzhou, the capital city as an example, Chen Yichang, an official from Fuzhou finance office introduced that the city set up a special fund worth one billion yuan to guide local companies to file for IPOs.
Other measures, he added, include easing credit financing requirements, tax breaks as well as financial rewards for the companies.
Geographically, Xiamen topped the province with 48 listed companies, followed by Fuzhou with 43, Quanzhou 17 and Nanping 7. The listed companies in Xiamen and Fuzhou combined to account for 68.4 percent of the total.
The growth momentum is expected to sustain in Fujian this year, as 41 companies in the province, as of April 9, reportedly are lining up for IPO filings.