Uni Core Holdings Corp. (fka UCHC)

[avinanyc]

http://en.ce.cn/main/photo-news/200504/11/t20050411_3569397.shtml

The new board for small and mid-sized companies on the Shenzhen Stock Exchange has been quite successful since it was launched a year ago and the Shenzhen exchange is expected to be turned into China's NASDAQ some day in the future, said Cheng Siwei, vice chairman of the Standing Committee of the National People's Congress at the China Venture Capital Forum 2005 in Shenzhen.

Cheng said regulators are considering measures to expand the number of companies seeking listings on the new board in an active and cautious way to pave the way for an eventual launch of a NASDAQ-style stock exchange catering to China's private and high-tech companies.

Cheng said it may take some time in building the Shenzhen exchange into China's NASDAQ, but such a goal can be achieved so long as efforts are made.

"If we can build Shenzhen Stock Exchange into China's NASDAQ by combing the main board, second board and third board in Shenzhen in the future, it will play a very important role in boosting the city and even the whole country's development," said Cheng, who is often referred to as the "father of China's venture capital."

The small and medium-sized enterprises board was launched in Shenzhen last year, with the first batch of eight companies making their trading debut late June. So far, 40 companies are listed on the board and have raised 10 billion yuan (US$1.21 billion), 250 million yuan for each company on average. All these 40 companies have done well except Jiangsu Qionghua Hi-tech Co., which was censured for bad information disclosure. The board has made contributions in supporting the country's hi-tech firms as 24 firms were certified as hi-tech enterprises, said Cheng.

As for the appropriate size of the small and medium-sized enterprises board, Cheng said the number of companies listed on this board could be one third or a quarter of that of the main board in other countries.

"We've heard that Shenzhen is to be China's NASDAQ, I think it's very important and I think Shenzhen will succeed in doing this," said American Kramlich C. Richard, co-funder and general partner of New Enterprise Associates. "Shenzhen is a symbol of China's development."

The magic of VC investment lied in two aspects: to bring gains to its people and government, and to construct a good structure for talents with good visions to succeed. Shenzhen should do more in these two fields to be China's NASDAQ city, said Richard.

"There should be three NASDAQs in the world: one is in the United States, one should be in Europe and another should be in Asia. China would be the only country to have a NASDAQ exchange in Asia. Among the top 10 best companies listed in the United States last year, Shanda Interactive Entertainment Ltd. and 51Job Inc. were from China. It shows China has the ability to develop the best stock market in the world," said Martin Haemmig, co-chairman of Swiss Private Equity & Corporate Finance Association