Songjiang shows strength with IPO track record

The number of Songjiang District-based companies that are newly listed on Shanghai and Shenzhen stock exchanges has amounted to 11 so far this year, a record high for the district and ranking second citywide.

The 11 initial public offerings, eight of them main board or STAR Market listings, mainly are in the advanced manufacturing industries, including integrated circuits, smart manufacturing and new materials.

Songjiang has so far 352 public companies, and the number will increase in the future as more businesses choose to grow by tapping support from the market.

Within three weeks between September 24 and October 15, five companies in the district hit the market.

On September 24, Pinlive Food Co debuted on the Shenzhen Stock Exchange. Four days later, Swancor Advanced Materials Co was listed on the Shanghai Stock Exchange.

On September 29, Lily & Beauty Cosmetics Co achieved a main board listing in Shanghai. On October 12, Zhongyin Babi Food Co succeeded in its main board listing. On October 15, Holystar Information Technology Co was listed on the STAR Market.

The IPO details also reveal the strong performances of Songjiang companies.

Transcom Instruments Co was selected among the first batch of preferred new firms in the over-the-counter market.

Pinlive Food Co, the first A-share IPO company in the imported food sector, was also among the first batch of registered firms in the growth enterprise market.

Lily & Beauty Cosmetics Co became the first e-commerce cosmetics company on the main board market.

The exciting IPO performances by Songjiang companies have been nurtured by the “fertile soil” of the district’s Yangtze River Delta “G60 High-tech Corridor” vision.

The vision, a construction of an urban-rural development axis to connect Songjiang with eight cities in the Yangtze River Delta, has been focusing on driving regional industrialization from “made in China” to “innovated in China.”

As the vision of invigorating science innovation into industrial development is being carried out, the capital market’s interest and confidence in Songjiang and the delta region also increase.

Economic reforms help with high-quality economic development. The district, while establishing the SSE G60 corridor service base, carrying out central bank policies and establishing special industrial funds, among others, continues to raise its finance sector’s service effects.

As the initiator of the G60 High-tech Corridor vision, Songjiang is also benefiting from science innovation and economic reforms.

The district has achieved an average yearly increase of 14.4 percent in terms of fiscal revenue over the past four years, and monthly fiscal revenue has maintained positive growth for 57 months in succession.

By the end of this year, the number of high-tech companies in the district is expected to surpass 1,400.

Since the start of 2020, Songjiang government has been issuing loans to help firms solve financing problems while seeking cooperation between city-level and district-level governments, industrial parks and banks.

Authorities in Songjiang, while cooperating with professional institutes such as the Shanghai Stock Exchange, offer coaching for each pending IPO company.

A training mechanism has been launched to promote and monitor a company’s IPO progress. A common appeals list for pending IPO firms and their solutions has been drafted to facilitate a firm’s IPO process.

Taking the global COVID-19 pandemic into consideration, Songjiang government has issued IPO subsidies amounting to 34 million yuan (US$5 million) to its more than 70 companies who are preparing for an IPO.

“Our next step will be to empower more companies to have the ability to go public, and to fully exert finance’s function as an economic catalyst,” said an official with Songjiang Development and Reform Commission.