Taiyuan Small Firms Active in Equity Financing

Five small and midsize companies from Taiyuan City, central China, have put up their equities on the Binhai International Equity Exchange (BIEX) for auction since the city held an equity financing fair on March 18, 2009, according to local officials.

About fourty companies have consulted the bourse about the listed equities. Aureos China Fund, one of them, is negotiating with Shanxi Jincu Biotechnology Co. Ltd. (transliterated) about acquisition of the latter's equities.

Besides, 20 other Taiyuan companies are applying for equity financing on the bourse, including Taiyuan 5i5j Real Estate Brokerage Co., Ltd. and Shanxi Hengfeng Industry Co., Ltd. Later, the BIEX's local brokerage will report eligible companies' information to the bourse for thorough examination on financing plans.

Recently, the Shanxi Small and Midize Company Bureau and the brokerage organized some banks, guarantee institutions, and rating agencies to research local financing. They found that many promising innovative firms were facing fundraising difficulties due to problems in information, management, and financing experience.

Source: www.hexun.com (June 01, 2009)

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