China’s New Energy Enterprises Speed up Overseas Expansion

With the new energy market pick up, after two years, China’s new overseas listed energy companies start another boom, the use of international capital, in the larger context of optimal allocation of resources; the same time, overseas capital market for corporate branding also play a role is conducive to China’s new energy industry to expand overseas.

Wave representation overseas listing

Recently, China’s new energy companies set off again after two years overseas listing boom.

Local time on October 7, China polysilicon vendors NYSE landing big new energy companies. Prior to October 1, China’s first wind power machine manufacturers – Guangdong Mingyang Wind Power Group Co., Ltd. has successfully traded on the NYSE.

It is understood that the first day of listing, a large new energy to the issue price of 5.1% higher than the $ 9.98 opening, after the stock rose, rose to $ 10.48 once. Ming Yang successful financing of wind power is $ 350,000,000, including the New York Stock Exchange this year, the National Stock Exchange and Nasdaq all U.S. capital markets, including the largest IPO.

“China’s new energy company in the United States caused great concern among investors, re-opened the Chinese energy companies in the United States a new way.” An industry source told this reporter in an interview.

Beginning in 2006, Suntech, LDK Solar LDK, Yingli Green Energy and a number of China’s new private enterprises in the energy sector of the New York Stock Exchange in the first knock on the door. Since the outbreak of the 2008 financial crisis, along with the journey into a trough.

This year in May, the NYSE Jingke solar landing, the first to break the capital market, the ice of the new energy industry, as more than two years in the U.S. capital markets, the first successful IPO of Chinese solar companies.

At present, preparations are also a number of listed companies at home and abroad, including turbine manufacturers Sinovel, wind farm operators Huaneng New Energy Industrial Co. Ltd., Huadian New Energy Development Co., Ltd., New Heaven and green energy Co., Ltd. and so on.

“The recent energy companies in China’s new wave of overseas listing, and at this stage the overall development of new domestic energy industry is directly related to the situation better.” Investment Advisor in Senior Fellow, Li Sheng-mao China Economic Times, in an interview that the need for funds to related companies to expand production capacity and scale, the industry has been the emergence of a number of more competitive business, this time choose overseas listing will help improve market acceptance.

Experts predict that China in the world economic recovery and growth in the “engine” will attract more investors concerned about the role of Chinese companies. With the new energy market pick up, new energy future more companies will be listed, including in overseas capital markets IPO.

Speed up overseas expansion

As the representative of a wind turbine manufacturing industry, business, Ming Yang New York Stock Exchange marked the landing of wind power equipment manufacturing industry fan the competitiveness of industry by the international recognition of the capital.

Ming Yang rapid development of wind power is an important reason is efficient use of financial capital. It is understood that the course of development in four years, Ming Yang of wind power and many financial institutions home and abroad to establish a good relationship, a lot of money into their own R & D and market development adhere to laid a good foundation.

However, the investment adviser recently released the “2010-2015 China’s wind power industry, investment analysis and forecast report” says that right now a fan industry as a whole has shown a trend of overcapacity, which makes control of the financial institutions tend to industry, the size of credit-related SMEs in this environment in order to obtain the support of financial institutions, is clearly not easy.

It is understood that overseas capital markets emphasize the company’s future growth, the core competitiveness of enterprises is valued, while the domestic capital market, the reality is even more emphasis on corporate business performance, more emphasis on market position and scale.

In recent years, a number of flexible mechanisms and master the core technology of private enterprises in the new energy industry, competition, and select the overseas market, which makes the overseas listing of shows to private enterprises and listed companies mainly in the premium of the stock issue price larger features.

Yang-Ming wind power, for example, currently about 50 times the stock’s price-earnings ratio, although with Alibaba and other capital markets in the U.S. hundreds of times price-earnings ratio is quite different at every turn, but still get a high premium in overseas markets. However, Ming Yang Electric Group said publicly that the responsible person, choose the markets in which not only consider the premium level, mainly based on the company’s market conditions. Yang Ming Group in the future of wind power will accelerate the overall landscape of clean energy storage solutions integration as well as overseas market expansion strategies.

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