Since the Beijing Stock Exchange was first launched on Nov 15, innovation-oriented small and medium-sized enterprises in Hangzhou have been showing their capabilities on the stock market, local media outlets reported.
Gcom Technology, a high-tech company based in Binjiang district, Hangzhou, was one of the first 81 companies to be allowed to trade on the BSE. Established in 2012, Gcom developed as a solutions provider of information communication technology services and has seen its annual revenue double from 1.23 trillion yuan ($193.31 billion) in 2018 to 3.33 trillion yuan in 2020.
"As one of the first to trade on the BSE, we felt honored, inspired, and deeply responsible," said Zhao Guomin, chairman of the company.
Zhao said he thought the bourse had built a bridge between SMEs and capital, bringing both sides enormous opportunities.
"I believe Gcom Technology will receive solid support from the capital market after being listed and we will be sure to pay back investors with better performance," Zhao said.
Public data show the total trading value of the first 81 BSE-listed companies has exceeded 21.2 billion yuan in the bourse's first trading week, with these companies' prices rising by 3.75 percent on average.
According to the official announcement of the first 81 companies, 87 percent are rooted in advanced manufacturing, modern services, high-tech services, and strategic emerging industries.
These industries have also played a major role in the vibrant progress of Hangzhou's private sector in recent years.
Statistics show that in September this year, 32 Hangzhou companies were newly recognized by the Ministry of Industry and Information Technology as "little giants", bringing the total number to 53. "Little giant" is a nickname for leading SMEs that specialize in niche sectors, command a high market share, and boast strong innovative capacity and core technologies.
Continuous investment in research and development was key to these companies realizing technological breakthroughs as their total expenses on R&D investment has accounted for an average of 12.27 percent of their annual revenue.
BSE's opening has no doubt sent a positive signal to these companies, and it can help them solve problems related to direct financing, open the door to IPO capitalization, and create a healthy investment and financing environment.
"An unimpeded financing environment will in return offer us a stable, innovative, and entrepreneurship-oriented business environment," said Shou Bingyan, chairman of Transtecno, a manufacturer in the reduction gears industry.
Shou said that Transtecno is currently striving to improve the quality of its products, build its brand, and replace imported products. He expressed hope that the BSE will not only solve SMEs' financing difficulties but also create a friendly climate for the development of their technology, products, and market feedback, which is very important to SMEs.