Report Highlights

After the IPO application of Hunan Boyun New Material Co., Ltd. was adopted at the meeting of the Issuance Review Committee of China Securities Regulatory Commission on September 17, 2008, review of IPO applications was ceased. The US subprime lending crisis evolved into a global financial crisis. After the recovery and prosperity from 2005-2007, China's securities market got into recession in 2008, with the SSE Composite Index plunging from 6124.04 points to 1664.93, down 72.6%, which was the largest decline worldwide in this round. To stabilize the market, China's Securities Regulatory Commission slowed down review of IPO applications and revamped conditions on IPO.

As of the end of Q3 2008, 120 Chinese enterprises launched IPOs, down 28.57% from 168 in 2007. Chinese enterprises raised 22,392 million yuan through IPOs, down 47.07% from 42,302 million yuan in 2007.

During Q1-Q3 2008, among enterprises that launched IPOs in China's stock market, manufacturing was the No. 1 industry, taking up 38%, followed by energy and mining, chemical, IT, health and logistics.

Due to the slump in the securities market, the Issuance Review Committee of China Securities Regulatory Commission slowed down IPOs and raised review threshold. In 2008, 115 Chinese enterprises' IPO applications were adopted, 95 of them passed review and 20 failed. One enterprise was disqualified for listing. The rejection rate was 18.26%. The use of funds raised was the No. 1 cause of failure to pass review. Specifically, it involved unclear enterprise development strategy, financing projects' discordance with the enterprise's development direction, low relevancy to main business, high risks of financing projects, fierce market competition, etc.

In the face of the turbulent securities market and increasingly austere issuance environment, we release the 2008-2009 Annual Report on the Listing Strategies for China's Enterprises, which helps enterprises, investors and industry insiders grasp more accurately Chinese enterprises' IPO strategies.
* In-depth, full and accurate research data: Based on in-depth research in 115 enterprises that passed review by the Issuance Review Committee of China Securities Regulatory Commission in 2008, the report elaborates on market choice, ownership and control rights setting, issuing price, and issuing expenses.
* All-round and in-depth analysis of brand competition: The report studies 25 leading undertakers' undertaking capability, sponsoring capability, case success rate, and costs, and provides basis and recommendations for listed enterprises to select undertakers.
* Case study: It thoroughly reveals the major factors affecting the success of IPO and major risks related to review. It studies 21 enterprises that fail to pass review by the Issuance Review Committee of China Securities Regulatory Commission in 2008, reveals the key makings of success, and identifies issuance risks.
* Scientific and complete forecasts: we conduct regression modeling and expert verification of major market segments, and examines related industry links, deriving valuable trend analysis and quantitative forecast results.