Shanghai Evans Investment Management Limited

SEIML is a specialist corporate finance firm providing foreign SMEs and corporates with direct access to China's capital markets through a regulated exchange. We also provide a new asset class for domestic institutional investors that is overlayed with a very high level of corporate governance.

SEIML’ s Service Offering:

1. Listing On-Exchange

  • Listing on the Incubation layer for startup firms
  • Listing on the Innovation layer for established firms

2. Financial Analysis and Valuation

  • To support fund raising, bank financing and investor presentations
  • To support investments or acquisitions

3. Capital Raising

  • On-exchange (listed private equity as per 4th board regulations) or off-exchange (unlisted private equity)
  • Bank loans and government support

1. Listing On-Exchange

Listing on the Incubation layer of the SIB

  • Ideal for young firms: the Incubation layer of the SIB allows new firms to complete a listing on the Exchange that will allow them to ‘fast track’ to the Innovation layer where they can then raise capital on-exchange
  • Ideal for established foreign firms looking to expand in China: this is also an ideal option for a foreign company that has a successful business abroad and simply needs time to transfer the technology to China and set-up here
  • Simplified & easy process: the criteria for listing is very flexible and details are in the Listing Document that can be requested
  • Offsetting of Listing Fee : fees paid for this listing can be offset against the fee for the Innovation layer for companies that graduate to this second layer

Listing on the Innovation layer of the Exchange

  • Ideal for established foreign firms already operating in China: this is an ideal option for wholly or majority-owned foreign companies that have a successful business in China and looking to expand their operations and, thus, need further capital
  • Gives the ability to raise capital through SIB: this is an ideal option for a foreign company that has a successful business abroad and simply needs time to transfer the technology to China and set-up here
  • Special provision: If the company is capitalized by its parent by CNY 3 million, it does not have to meet any operating criteria in China, allowing it to ‘fast track’ to capital raising in China
  • Higher ‘quality’ of firms: companies here will also be part of the Exchange’s Market Surveillance and, thus, part of an issuer group that has high transparency and corporate governance making these companies relatively more attractive to domestic investors than issuers from other platforms

Suzhou International Board (SIB) – Advantages for Issuers

  • Investors are concerned about return – and risk. Risk includes poor disclosure and governance
  • The SIB overlays a Market Surveillance process allowing for quarterly discussions with SEIML and its accounting partner to ensure a regular and full disclosure of financial and other material events
  • Though some issuers may view this as a cost, it translates into a higher level of confidence for investors and a lower cost of capital for issuers – it is a positive investment and consistent with the standards and practice on international exchanges

Suzhou International Board (SIB) – Advantages for Investors

  • Superior corporate governance and mandatory disclosures will translate into better risk and return profile for investors
  • The SIB overlays a Market Surveillance allowing for quarterly discussions with SEIML and its accounting partner to ensure a regular and full disclosure of financial and other material events
  • SEIML intends to make the SIB “investor driven”, meaning we work with investors to identify their investment needs (amount, structure, industry, etc.) and seek out issuers to meet that specific demand. We will be your partner in achieving your investment or ALM goals
  • The SIB brings new, foreign-invested names to China and, thus, provides real diversification value
  • With time, we will also create an Index and other structures and derivatives that will allow for more effective investing and risk management

To get the detailed document of the Listing requirements for both the Incubation layer and Innovation layer of Suzhou International Board (SIB), please submit a request via the message form on our Contact page.

2. Financial Analysis & Valuation

Our Financial Analysis & Valuation Report contains the following segments

  • Business Overview
  • Industry Analysis and Competitive Positioning
  • In-depth Financial Analysis
  • Valuation of Firm or Target Investment
  • Investment Risks

Our Financial Analysis & Valuation Report and Investor Presentation can be used in many applications

  • Listing on-exchange for IPO or secondary offering
  • Private equity capital raising
  • Presentation to bank for operating or term loans
  • Acquisition of a target investment on standalone or consolidated basis
  • Valuation of public equity to be held in an investment portfolio (for Buy-side firms)

3. Capital Raising

Raising Capital in China On-Exchange

Why as a foreign-invested company should you consider raising capital in China and why on the SIB?

  • China has capital controls and likely will for many years more. Money injected into China by ‘head office’ may prove difficult to repatriate; it makes sense to match your investments with your corporate financing of these investments
  • Banks dominate financial intermediation more in China than other large economies and listed exchanges were few and dominated by larger firms. This has left a ‘gap’, which PE, FinTech and others have tried to fill. However, with the growth of Life Insurance Co’s and other institutional investors, there will be a growing demand for corporate securities – but only where investors are confident about the corporate governance of the exchange. This is the niche the SIB is filling and by being a part of it you can gain financing at attractive terms