Xiaojie HUANG addressed on CCTV’s Forum “How to Solve SMEs’ Financing Problems”

2009-06-06

How to Solve SMEs’ Financing Problems Forum was hold on 6th June in Beijing, which was cosponsored by the Ministry of Science and Technology (MOST), the Ministry of Industry and Information (MIIT), the Ministry of Finance, People's Bank of China, China Banking Regulatory Commission (CBRC),  China Association of Small and Medium Enterprises and Economic Channel of China Central Television, and broadcasted on Economic Channel of China Central Television. MOST Minister Wan Gang, MIIT Minister Li Yizhong, CBRC Chairman Liu Mingkang, presidents of China’s biggest five banks, China Beijing Equity Exchange’s president and other governmental and financial personnel attended the forum. Jiuding Capital gave a keynote speech as the only VC/PE firm that was invited.

Following is the full text of Xiaojie HUANG’s speech on the forum.

I am very appreciated this opportunity to be able to communicate with all of you.

I have realized the following two laws after looking at the participant list. 1. state-owned financial institutions have more financial resources, but the private investors have few. 2. Among the participants, most of them are from banks. It’s also the structural problems---most companies in investment sector are state-owned and indirect institutions.

I think equity investment can play its role in solving the problem:

1. The decision mechanism of equity investors and market-oriented and consistent with many SMEs, so we can communicate with them better;

2. Most funds have been regarded as equity capital while investing and we plan to usher the invested companies in capital markets;

3. Our investment activates are connected. Our abilities of management and risk control can be improved and we can well communicate with banks. After we invested in a Sichuan company, it got a 40 million yuan of unsecured loan from banks, which was unimaginable;

4. We are flexible and insist on long-term investment and value-added services.


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