A worker works at a factory of Ben Gang Group Corporation in Benxi, northeast China's Liaoning Province, Aug. 18, 2021. (Xinhua/Yang Qing)
BEIJING, Aug. 26 (Xinhua) -- Capital market is well-positioned to play a key part in the integration of finance and industry in the revitalization of northeast China, said Chen Li, chief economist of Chuancai Securities, in an interview, responding to the remarks made at a key State Council meeting on Monday, underlining financial services to push for greater progress in revitalizing the region at a new level.
On the one hand, direct financing has a great growth potential in the region as data from iFinD, a financial data terminal, showed that six new stocks have been issued in the region since 2021, among which three are in Jilin Province, two in Liaoning Province and one in Heilongjiang Province.
"So far the number of newly-listed companies on the A-share market has been equivalent to that of last year, indicating more attention from the capital market on the region's enterprises, which will in turn promote the high-quality development of the region," said Chen Mengjie, chief strategy analyst with Yuekai Securities.
He Nanye, a researcher with Suning Institute of Finance, pointed out that the capital market could contribute to the revitalization of the region in three ways: equity financing, bond financing as well as merger and acquisition (M&A).
He estimated that equity financing, especially through initial public offering (IPO), will be a hit in the future. Bond financing, however, will provide underlying support for large-scale companies in heavy industry with high demands of bond issuance.
On the other hand, more M&A will be seen in northeast China since the country steps up mixed-ownership reform to improve state-owned enterprise (SOE) efficiency.
Recently, China has launched a program on promoting coordination between SOEs in the country's northeast region and central SOEs to ramp up the revitalization of northeast China.
In the program, a total of 111 local SOEs in the three provinces and the Inner Mongolia Autonomous Region will work closely with 100 subsidiaries of 53 central SOEs, according to the State-owned Assets Supervision and Administration Commission of the State Council (SASAC).
These enterprises will cooperate for optimizing and coordinating industrial and supply chains, transforming and upgrading traditional industries, making breakthroughs in core technologies, improving corporate governance and enhancing the building of talent teams.
He believed that the region should further encourage market-oriented M&A, with more social capital participation, together with more supports in terms of sound infrastructure and favorable policies, to spur the vitality of the regional economy.
The region has seen 51 M&A events among listed companies as of August 25, mostly in industries such as mechanical equipment, biomedicine and chemicals.
(Edited by Li Shimeng with Xinhua Silk Road, lishimeng@xinhua.org)
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