Wuxi's Huishan district is seeing more and more of its companies listed on the National Equities Exchange and Quotations (NEEQ), or New Third Board, the pilot national share transfer system for small and medium-sized enterprises.
So far, thirteen companies from Huishan district have gone public on the New Third Board, mainly due to preferential policies and rapid growth prospects.
The first business in the district to join the New Third Board was Wuxi Shunda Intelligent Automation Engineering, a company specializing in deliveries for large enterprises.
Director of Shunda, Gao Jianfei, said, "Both output value and revenue of our company have almost doubled since it went public on the New Third Board two years ago."
Since joining the board the company has also extended its industrial chain ranging from equipment research and development and manufacturing to follow-up services since being listed.
Huishan district is seen by many as one of the birthplaces of southern Jiangsu's township enterprises, boasting a solid foundation in mechanical and electronic industries. Recently, new energy and new materials have become emerging industries in the district.
"The New Third Board has brought great opportunities for small and medium-sized enterprises," said Pu Hongliang, deputy director general of the development and reform bureau of Huishan district.
One of the latest enterprises to list itself on the New Third Board is Jiangsu Linglong New Material. The company specializes in research and development of non-ferrous alloys. Facing excessive production capacity, the company exploited new materials as well as expanding its application of technical patents.
When asked about the best ways of improving his business's future, Linglong president, Feng Lixin, said, "How to introduce advanced technologies and attract talented people for innovation? Go public!"
Feng added that public listing can also alleviate financing difficulties and propel companies to create more value.
According to officials, NEEQ-listed companies can be awarded as much as 1.5 million yuan ($230,100).
In 2016, another 15 companies are expected to be listed on the New Third Board.
Edited by Owen Fishwick
