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Shanghai Equity Exchange:
Shortcut for SMEs to Flourish
in Chinese Market
Confidential and for internal use only
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China: The Economic Leader
China GDP expands exponentially since 2000
GDP (Trillion)
A Robust Personal Income Growth Boosts
Personal Consumption 2002-2014
China GDP 1992-2014
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Unprecedented Business Opportunities in China
Future GDP Expansion
- In 2030, U.S. economy size will be
$25 trillion.
- China GDP now $7 trillion and
expected to be $22.2 trillion in
2030.
Expected GDP (Trillion) in 2030
Grey Area = Current
Green Area = Expected
- China GDP will expand $15 trillion
- $15trillion is more than the size of
Japan combined Germany
economy now.
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China: Emerging Market not to Miss
Funding Platform
China Securities Regulatory Commission(CSRC) aims to
- Internationalised China’s capital market
- Thus, promoting SEE to be a platform for SMEs to reach international funding
One Belt One Road
- Outlined by President Xi Jingping in 2014
- Drive trade co-operation for China and nations along Maritime Silk Road such
as Thailand, Laos and Myanmar.
- Enterprises in South East Asia to gain listed position in China will gain first
mover advantage
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Tight Trade and Economic Ties TH and China
Thailand’s Largest Importer
• In 2014, Thailand has exported
over USD 76.74 billion to China,
26% of Thai’s total export value
(IMF).
China-Thailand FTA 2003
• China and Thailand signed FTA in
2003 , allowing 188 types of
fruits and vegetables to export to
China with zero tariffs.
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What is SEE?
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Shanghai Equity Exchange or SEE
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Founded in 2010 with the approval of , State
Council, China Securities Regulatory
Commission and Shanghai Municipal
Government
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Shanghai government as the major
shareholders of SEE (31% holding)
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Aimed to be Nasdaq of China
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Stock Exchange
Total Listed
Companies
SEE
4,967
SSE
1,085
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For Who?
• WHO: Any SMEs with transaction related to China or Chinese business
development story
• Especially but not limited to:
1. IT, internet, software, O2O, etc.
2. Financial service
3. Aesthetic, holistic medicine, integrative medicine, medical services, Spa
products, herbs and spices, etc.
4. Alternative energy
5. Biotechnology
6. Processed food especially Thai food, F&B
7. Childcare and elderly care
8. Creative economy, value-added, cultural, innovative products and services
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SMEs Shortcut: CHEAP EASY FAST
Top three attractions to encourage enterprises to be listed
1) Cost effectiveness for SMEs;
2) Simple listing procedures for foreign enterprises;
3) Fast track to achieve recognition and opportunities for equity financing
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SMEs Shortcut: CHEAP EASY FAST
PR & Marketing Short-cut
Listing Status  Credibility  PR & Marketing  Business Expansion
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SMEs listing in SEE will receive a listing code to be shown on company
brochures, name cards, advertisements, etc.
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Since SEE is backed and owned by Shanghai Government, companies with this
listing code then have high credibility.
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Consequently, it is easier for listed companies to meet new clients, business
partners, suppliers and collaborates in new business projects
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The higher success in business matching, the higher chance for companies to
expand their business in China and elsewhere.
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SMEs Shortcut: CHEAP EASY FAST
Fund Raising Short-cut
Listing Status  Credibility + Benefit from Fund Raising Channel  Business Expansion
• Being listed = company is tightly screened by both recognized sponsor and SEE.
• Implication = company has good governance, well established business development
plan
• Listed companies can enjoy “members only” benefits such as business matching
seminars held by a sponsor firm linking listed companies to potential investors
• Agreed transaction through brokers for shares traded in secondary market
• Higher chance to succeed in equity, bond placement
• Higher chance to get bank loan and credit line due to credibility.
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Why “NOW” for Thai SMEs?
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Listing in SEE is now very popular, both Chinese and foreign companies
BMI now prepare 30 Japanese SMEs to be listed
 SEE will raise requirement soon to lower the no. of CO.
Now companies from Singapore and Malaysia are preparing
These SMEs have the same market capitalization size and are also in the
same industries
• If Thai SMEs do not act fast, these SMEs will take the first mover
advantage
•  Small piece of pie left for Thai SMEs.
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SEE: Steppingstone to HKEx, World Gateway
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HKEx = world leading financial hub, is eyed to be the listing destination
However, listing in HKEx have higher standard of requirements
Listing in SEE helps companies to be ready because
1. Improve corporate governance, business development, etc. due to the requirements
of SEE and competition among other listed companies
 become more prepared to fulfill HKEx requirements
2. Credibility
 get equity finance and higher chance of debt finance + business partnering
3. Fund raised for business
 Business expansion and has sufficient capital for HKEx
4. Securing more supports from Chinese government
 doing business easier + helping to build network
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SEE Foreign Listed Successful Case
• Blanc-(SEE 203857), listed since
2015, paid up capital RMB 1
million
• A premium eyelash extension
beauty store from Japan
• Offer one stop tailor made
eyelash beauty treatment to
customers over the world,
including Japan, Thailand,
Vietnam, China, Hong Kong and
Singapore
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SEE Foreign Listed Successful Case
• Blanc successfully expanded its business by cooperating with
AEON Store (984 HK), after being a listed company in SEE
The first eyelash branch in Aeon’s Wuhan
store
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SEE Foreign Listed Successful Case
Weibo
Advertisement on official
website of AEON Store
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Shanghai BMI Funds Management
• An experienced sponsor which
successfully promoted 188
companies to be listed in SEE
• Capital raised after listed over
RMB 50 millions
• A listed company in E board since
Feb 2015
• Sponsor code BF0047
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Q&E Board Steps and Timeline
Process
E Board (6 months) Q Board (4 months)
Company registration in HK & Shanghai (if needed)
Yes
Yes
Company structure reform
Yes
No
Sponsor Appointment
Yes
Yes
Due diligence
Yes
No
Company’s assessment by a sponsor
Yes
Yes
Sponsor submits application to SEE
Yes
Yes
Submit a share registration detail + “Share Transfer
Prospectus”, “Articles of Association”, “Audit
Report” and “Legal Opinion
Yes
No
SEE assigns stock code
Yes
Yes
Information disclosure on authorized website
Yes
No
Listing ceremony
Yes
Yes
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Thank you
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END OF PRESENTATION
Disclaimer: BMI Group has made every attempt to ensure the accuracy and reliability of the information
provided on this update. However, the information is provided "as is" without warranty of any kind. BMI Group
does not accept any responsibility or liability for the accuracy, content, completeness, legality, or reliability of
the information contained on this update.
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