Chongqing Oriental Medicine Ipo History Of Revelation

The first hand study material of this article comes from an IPO program of a SME--Chongqing Oriental Medicine Company. After carefully analyzing a series of new practices, it draws some conclusions which would be useful to managers of SMEs and the investors.The body text includes the following parts. Firstly, it gives a general ideal about Chongqing Oriental Medicine Company, puts forward basic requirements for an IPO of SMEs, and specifically analyzes whether Chongqing Oriental Medicine Company meets such requirements and estimates its IPO possibility. Secondly, it points out a new practice in Chongqing Oriental Medicine Company IPO-- Chongqing Oriental Medicine Company swaps stocks with Berun Investment Bank to lower the IPO risk. This practice is the result of economic interest gaming between the would-be listed company and the investment bank. Thirdly, Chongqing Oriental Company raises funds for further development through private equity before IPO. This is a new way for SMEs to raise money. Fourthly, in the favorable age for IPOs of SMEs, this article analyzes the reason for Chongqing Oriental Medicine Company choosing listing in China and points out advantages of listing in China , this can help SMEs that wants to be listed to choose the right market. Finally, it articulates that private equity in the course of SME IPO may brings about excellent returns for investors, and also reminds investors tobe prudent in making investment decisions and put forwards some advices protecting investors from blindly following others driven by interests.With the fast development of Chinese economy, substantial accomplishment of the stock reform by the end of 2006, improvement of securities laws and regulations step by step, the State's efforts in pushing forward the capital multi-layer market and improving circulation channels of unlisted stocks of SMEs, all of the above will be the energy for the advent of a glorious time for the stock market. Over recent years, SME has taken a remarkable place in Chinese national economy, but problems preventing rapid growth of SMEs, specially shortage of funds are not solved yet. It would no doubt be a solution for SMEs to raise money through being listed in the nearly future. Fulfilling this will greatly promote the Chinese national economy.