On 18th September 2015, the first China's (Shanghai) New Third Board Market Traders Conference was successfully held by the Yangtze River International Chamber of Commerce (YRIC) and the Asia Pacific Finance Council in Shereton Youyou Hotel in Shanghai. The conference attracted a number of well-known figures and they shared their insights on the future of New Third Board Market.

Renowned investor Wang Gongquan: NTB Market has helped medium small and micro-sized enterprises to utilize capital market in new ways

Wang Gongquan, famous investor and Chief Strategy Officer of Qing Pu Tourism

In the first China (Shanghai) New Third Board Market Traders Conference, Wang Gongquan, famous investor and Chief Strategy Officer of Qing Pu Tourism, said that NTB has become a hit in China that has drawn the attention of investors and entrepreneurs.

The financing and development of medium, small and micro enterprises in China faced difficulties in many aspects, said Wang Gongquan in an interview, and NTB, especially the innovative power of NTB has offered solutions to these problems and enable above-mentioned enterprises to benefit from new capital market. The growing momentum of NTB set off its potential and revealed the underlying social background and reasons of its popularity. 

Wang Gongquan, famous investor and Chief Strategy Officer of Qing Pu Tourism and attendees of the conference

He said, we can draw a conclusion from China’s economic development, which is higher the degree of marketization the freer the development atmosphere and the faster the development . And some innovative development is produced in the market. I hope that the development is a benign and healthy process in China’s economic development.  

Wang Shaoyan, partner of Dingfeng Asset Management Co., Ltd. and the chairman of the board of Ding Feng Ming De: there are some dark horses in the NTB Market.

Wang Shaoyan, partner of Dingfeng Asset Management Co., Ltd. and the chairman of the board of Ding Feng Ming De said in his speech, the positive momentum of NTB remains, because systematic opportunity foundation is always there. Mr. Wang also said that, NTB market is actually a market with threshold, but the threshold is different from that of the main board, second board market and those in the verification system. Threshold in the NTB market is internal and with many highlights. The first highlight is innovation, especially in orders. The second is self-regulatory. The enterprises with no self-regulation awareness, are not operating according to regulations. The capital market will teach these enterprises a lesson in the future.

the first China (Shanghai) New Third Board Market Traders Conference held by YRIC

There are a large number of star-up medium, small and micro enterprises in NTB. Compared to traditional PE and VC, NTB is hard to define, so we can only call it NTB investment. It should have its own characters and line of thought, which is growing innovatively from generation to generation and requires all investors to build NTB together. What we should invest in NTB? First and foremost should be markets with huge potential but not strict regulations, like car market and home-decoration market. But in an Internet era with high transparency, these markets will be regulated.

Currently medium and small enterprises take up a big ratio of market, so it is safe to say there will be many dark horses in future NTB enterprises, which will be a major force in innovation.

The chairman of ZENDAI Group Mr. DAI Zhikang: China's stock market should rely on the NTB Market

The chairman of ZENDAI Group Mr. DAI Zhikang delivering a speech

Chairman of Zendai Group DAI Zhikang said in the first China’s NTB Traders Conference that we should not underestimate the NTB today, though these companies are small, unconspicuous, and often called “little third” (meaning concubine in colloquial Chinese), Chinese stock market needs to rely on NTB, instead of the main board.

Speaking of NTB, it is a major force in solving Chinese crisis. With no investment there is no future, and investment demands capital market. Main board has been performing too awfully to carry on this responsibility, so this is when NTB comes into play. There are over 3,000 NTB companies, I hope that there will be twice as many this time the next year, and 10,000 the year after that. If 30 percent of the 10,000 listed companies are quality companies, China’s economic growth will be greatly stimulated. Without the driving force from the capital market, the impetus we are now witnessing wouldn’t be possible. Capital market is quintessential for star-ups. Though NTB is still in its infancy, there is very good sign of a promising future and we must have confidence in it. Now we are ready to list three companies onto the NTB Market, not including external ventures. More than half of the companies are vying for chance. We are bold and active, eager to join the NTB Market just like the rest of us.”

Ateendees of the conference

Another area i want to invest in is the international market, Dai Zhikang said, 20 years ago Chinese economy was dominated by export, but since last year, Chinese consumers started to buy daily products from abroad in large quantities, so I invested in a website which serves as a platform for searching cost-effective overseas daily products. Online purchasing can help me identify the popular brands, so I can purchase some of them in the future.

Partner and Chairman of Shenzhen Co-Win Venture Capital Investment, Mr. Zhang Wenjun: the NTB market opens a whole new range of opportunity

Zhang Wenjun said, NTB is a brand new opportunity for us enterprises, because NTB has grown prominently. Over 3,000 are being listed and the number is expected to grow to 4,000 by the end of this year. This is utterly different from traditional Shanghai or Shenzhen Stock Exchange, in which there are only over 2,000 companies after 20 years of development. NTB is listed with approximately 3,000 companies in a year. But the problem of NTB is lack of fluidity, so what will the trend be in the future?

Q&A session

Mr. Zhang noted that the market in the near future will become a battlefield of merger, acquisition and restructuring. The NTB market information can be readily trusted, for the correctness, quality and sufficiency of the disclosed information are basically achieved. The NTB market in the future will greatly facilitate our M&A and restructuring, except in the case of information asymmetry.