Companies

Canadians searching for investors from China

By Cai Xiao (China Daily)
Updated: 2011-05-11 10:02

BEIJING - The Canada-based investor relations (IR) outfit CHF Investor Relations Co is making efforts to help foreign resources companies find investors in China and facilitate overseas market listings for small and medium-sized enterprises (SMEs).

Barry Leung, the director of Chinese business development at CHF Investor Relations, told China Daily that as Chinese companies become wealthier and incomes rise for the general population, the company is hoping to identify investors for a large refinery and pipeline project and for a gold mine.

"The refinery and pipeline project in the United States is valued at $100 million and we are looking for a large Chinese company," said Leung.

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"The C$15 million ($15.6 million) gold mine project is in Canada," he said, adding that the country has abundant mineral resources and that Chinese investors will find good opportunities there.

Leung said the company hopes to find investors with both good business sense and financial strength. CHF Investor Relations can also help Chinese companies to list on suitable stock exchanges, he said.

"For small and medium-sized enterprises in China that are finding it hard to list in the domestic market, CHF will assist them to list in Canada," Leung said.

D'Arcy Funfer, chairman of CHF Investor Relations, told China Daily that mining, petroleum, and gas companies can be introduced to the Toronto Stock Exchange, while the New York Stock Exchange and the Nasdaq are the preferred markets for high-tech outfits.

Funfer said that Canada offers a unique listing vehicle called the Capital Pool Company program.

"We first set up a shell company in Canada, and then seek an enterprise in China to list through the shell," Funfer explained. "In this way, SMEs can raise money faster and easier than through initial public offerings."

He said that CHF's core competencies reflect more than 30 years' experience in the capital markets and good relations with thousands of investors, traders and analysts.

Wang Wei, an investment manager at Beijing-based Hejun Consulting Co, said that IR management in China is still at a very early stage.

"Companies feel that they are achieving success when they list on a market, but in fact, that's only the beginning," said Wang. "Market value management is vital for their long-term development."

He said that IR companies have great prospects in China because an increasing number of businesses are raising money in the capital markets, and that those that are already listed will also be able to benefit.

During the next three years, Chinese entrepreneurs will be more intent on raising money in the capital market; 23 percent of those companies surveyed said they would like to raise capital through stock exchanges, according to the research agency China Entrepreneurs Survey System.