Growth Enterprise Market activates VC/PE investment

　　As the first batch of companies listed on the ChiNext board are about to enter the fully tradable market, the third anniversary of the ChiNext board is becoming an important focus for the market. Industry insiders generally believe that the unlocking of large non-tradable shares on the ChiNext board will put pressure on the market, but this pressure is more psychological, and they remain optimistic about the emerging industries that account for a high proportion of ChiNext companies.
　　According to statistics from the Shenzhen Stock Exchange website, as of October 19, the number of listed companies on the ChiNext board has expanded from the initial 28 to 355. The total issued share capital of ChiNext listed companies is approximately 60.057 billion shares, the total circulating share capital is approximately 23.294 billion shares, and the net amount of funds raised by the ChiNext board is 214.563 billion yuan, with an average issuance price-to-earnings ratio of 55.79 times.
　　Statistics show that 89% of the companies are in line with the development direction of strategic emerging industries, such as new energy, new materials, environmental protection and energy saving, electronic information, advanced manufacturing, and biomedicine. 93% are high-tech enterprises, 64% have investments from venture capital institutions, and 96% are privately owned enterprises. The ChiNext market has achieved remarkable results in supporting innovative enterprises and the development of strategic emerging industries, improving the financial support mechanism for technological development, encouraging and guiding social investment, and promoting entrepreneurship and innovation.
　　Over the past three years, the ChiNext market has been active in trading, the number of investors participating in the ChiNext market has steadily increased, the participation of institutional investors has deepened, and they have gradually become the main force in market investment, showing a pattern of continuously optimized investor structure.
　　Statistics show that as of September 12, 2012, a total of 21.44 million investors have opened ChiNext accounts, and 4.21 million accounts have participated in secondary market transactions. Among them, 77.43% of the accounts have more than two years of trading experience, indicating a high level of investor maturity. At the same time, the number of institutional investors investing in ChiNext has increased significantly. As of September 12, 2012, the proportion of institutional investor transactions has increased to 9.17%, and the proportion of circulating market value held has increased from 3.56% at the end of 2009 to 33.88% currently. The active attention and participation of institutional investors have optimized the investor structure of the ChiNext board.
　　According to the latest statistics from Qingke Research Center, in the third quarter of 2012, there were a total of 37 exit cases in the private equity investment market. Among these 37 exit cases, 34 were IPO exits, accounting for 91.9% of the total number of exits. It is worth mentioning that, from the perspective of the market distribution of IPO exits, the domestic market dominated in the third quarter, with 10 exit cases occurring on the Shenzhen ChiNext board, making it the market with the most exits for Chinese companies in both domestic and international capital markets.
　　According to statistics, approximately 220 ChiNext companies (nearly 70%) received investment from 456 venture capital institutions before listing, with a total initial investment of 10.5 billion yuan. Based on the latest stock price simulation calculation, the market value of venture capital holdings is as high as 97.2 billion yuan, and the initial investment has increased by 8.26 times.
　　Currently, the ChiNext board is not only gradually becoming the preferred choice for IPO financing for enterprises in various sub-sectors of emerging industries, but also the scope of ChiNext enterprises is continuously expanding, radiating across the country. Over the past three years, the regional coverage of the ChiNext board has continuously expanded, rapidly expanding from traditional economic powerhouses such as Guangdong, Beijing, and Jiangsu to the whole country. Currently, except for Ningxia, Tibet, Guangxi, and Qinghai, all other provinces have ChiNext listed companies. In addition to major technology cities such as Beijing and Shenzhen, the ChiNext market has also covered the central and western regions, especially provinces with strong technological innovation capabilities such as Hubei and Shaanxi. As of September 12, a total of 70 companies from the central and western regions have been listed on the ChiNext board, accounting for 20%.