As one of China’s less-developed provinces, Guizhou has long lagged behind in the utilization of the capital market and corporate investment. In 1993, Guizhou-based Zhongtian and Kaidi began trading on the Shenzhen Stock Exchange, putting an end to the province’s history without publicly-listed companies.
Since 2000, the province has experienced a V-shaped curve in the number of companies successfully launching IPOs. In 2001, four local companies, including Kweichow Moutai Co., Ltd., were listed on the stock market, and then another four had IPOs from 2004 to 2005. Afterward, the province endured five years of stagnation until Guizhou Bailing (Group) Pharmaceutical Co., Ltd. and Guizhou Xinbang Pharmaceutical Co., Ltd. joined the Shenzhen Stock Exchange. In 2012, Longmaster Information & Technology Co., Ltd. became the first Guizhou-based company to be listed on the Growth Enterprise Market. Statistics show that since 1990, when Shanghai Stock Exchange and Shenzhen Stock Exchange were established, only 21 Guizhou-based companies have been included in the A-share stock market, which combined to bring 12.401 billion yuan of investment to the province, accounting for only 0.2 percent of the total money on the two stock exchanges.
According to Niu Xuefeng, vice director of the Guizhou Securities Regulatory Bureau, less than one percent of the country’s total listed companies come from Guizhou. The province is ranked fourth from last in the number of listed companies, surpassing only Tibet, Qinghai, and Ningxia. “Currently, Guizhou even lacks backup resources for future listings,” he illustrates. “No more than 20 local companies have expressed intentions to get listed and meet requirements for an IPO. Among them, only four have entered pre-listing tutoring and restructuring phases, and one has had its listing application documents accepted for further examination. However, no substantial progress has been made in the tourism and mining industries, in which Guizhou has notable advantages.”