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Jiading creates a sound financial development environment

( chinadaily.com.cn ) 2014-07-23

Jiading district continued to speed up its financial development with the aim of creating a silicon valley of business services in the first half of the year.

A series of new types of financial works have been carried out in the region, such as financing transactions for listing enterprises, petty loans and commercial factoring.

As an example of enterprise listings and financial transactions, Youzu company was successful in its back door listing in June and it is the first online game company listed on the Shenzhen A-share market.

By the end of June, nine companies in the district had listed in the A-share market, and Shanghai Beite technology company was approved to list on the main board stock market in late July.

In the over-the-counter market, five district enterprises were newly added on the "new three board", and 16 local companies listed in trusteeship transactions. According to released data from Shanghai’s Equity Exchange, 24 companies achieved nearly 300 million yuan ($480.300) in equity financing – about 12 million yuan ($192,120) for each household with non-mortgage related loan financing.

In addition, Jiading further enhanced the granting of small loans to small companies. In April, one famous E-commerce company – Vipshop – was granted the right to set up a small-scale loans corporation, making it the 13th microfinance company in Jiading.

By the end of June, the district had lent a total of 6,142,000,000 yuan ($983,340,000) in micro-credits, an increase of 76.5% compared to the same period last year. The rapidly growing corporations are pioneering enterprises, science and technology enterprises and cultural creative enterprises.

At the same time, three financing guarantee institutions had 38 registered clients with a total of 271 million yuan ($43,390,000) in funds – an apparent increase of 97.5% compared with the same period last year. It opened up a useful experiment to make up for the shortfall in traditional bank funding.

In addition, factoring and other financial business accelerated in the district. Using the advantages of Jiading, it is the only guaranteed area for established commercial factoring companies except in Pudong district. Five companies were approved to be set up in the district with a total registered capital of 350 million yuan ($56,040,000). It has substantially improved the trade financing business.

On the other hand, with the introduction of more than 1100 equity investment and management companies, Jiading is further guiding equity firms to invest venture capital in the region, and accelerate the development of emerging enterprises. Additionally, it is building cooperation with Haitong securities, Bank of Ningbo and Shanghai Rural Commercial Bank, which will help to alleviate the financing difficulties of small and medium enterprises and fundamentally optimize the financing environment.

Edited by Zhang Yuchen and Brian Salter

MAIL TO DISTRICT CHIEFzxi@jiading.gov.cn

ATTRACTIONS

Jiading Fahua Pagoda

The Fahua Pagoda, 40.8 meters tall, is a square, brick-wood structure with seven stories, accessible by ladders.