China’s small and medium-sized companies need alternative funding sources.
China’s shift from a manufacturing to a service economy has hit more than a few speed bumps along the way, and one is the lack of vibrant capital-raising resources for nascent companies. But evidence shows that Chinese investors are ready to embrace tech firms and other smaller companies, whose stocks have at times outperformed state-owned enterprises on two of the country’s stock exchanges. Investment expert Ken Davies looks at the prospects for China’s own Nasdaq and offers some ideas on how exchanges for small to medium-sized companies may evolve. getAbstract recommends his eye-opening article to investors and executives interested in China’s changing investment landscape.
In this summary, you will learn
- Why China’s stock exchanges for small and medium-sized firms are critical to business growth and innovation
- What some likely outcomes suggest for the future of these exchanges
- What the Chinese government might do to support nascent companies
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