【Zero2IPO Insight】

ChiNext:
A Touch of Warm Sunshine after the Cold Winter

On Oct. 30th, 2009, with the long-waiting ChiNext finally setting sail, the first batch of 28 ChiNext-listed companies will go public together on the
Shenzhen Stock Exchange. After the cold winter of financial crisis, the launch of ChiNext brings a touch of warm sunshine to Chinese VC/PE industry.

All of the Stock Prices of ChiNext-listed Enterprises in First Batch Soared at the Opening with Their Average Opening Price Rising 76.5%
from Issue Price.

From Oct. 30th, 28 stocks have been officially listed on ChiNext. In the first trading day, all of stock prices surged. There was an average increase of
76.5% in opening prices compared with issue prices, among which Huayi Brothers topped the competition with an opening price of RMB63.66, 122.7%
higher than its issue price. In addition, five stocks enjoyed an increase of more than 100.0% in opening price, including Anke Biotechnology, Toread,
EVE Battery, Lepu Medical and Huaxing Chuangye; five stocks saw opening price rising by 80.0%-100.0%, accounting for 17.9% of all, which were
respectively Shenyang Siaxun, Dayu Water-saving, Gifore, Geeya Technology and Beijing Dinghan Technology; 15 stocks enjoyed an increase of
50.0%-80.0% in opening prices, accounting for 53.6%; and only two stocks were up below 50.0%.

Table 1 First Batch of 28 ChiNext-listed Enterprises

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Stock Company Name Headquarters Grade-1 Issue P/E Shares Openin Growth VC/PE Institution
Code Industry Price Ratio Issued g Price Rate
(10,000
shares)

300027 Huayi Brothers Beijing Services 28.58 69.71 4,200 63.66 122.74% China Equity

300009 Anke Anhui Bio/Health 17.00 46.83 2,100 37.00 117.65% Good VC
Biotechnolgoy care
300005 Beijing Toread Beijing Traditional 19.80 53.10 1,700 42.00 112.12% Leading
Investment
300014 Eve Battery Guangdong Clean- 18.00 54.56 2,200 38.00 111.11% CMTECH,
(Excluding tech Fortune VC
Shenzhen)
300003 Lepu Medical Beijing Bio/Health 29.00 59.56 4,100 61.00 110.34% Warburg Pincus
care

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300025 Huaxing Chuangye Zhejiang Broad IT 19.66 45.18 1,000 40.00 103.46% 　

300024 Shenyang Siaxun Liaoning Broad IT 39.80 62.90 1,550 74.00 85.93% Gold Stone
Investment
300021 Dayu Water-saving Gansu Traditional 14.00 53.85 1,800 25.60 82.86% 　

300022 Gifore Sichuan Services 17.75 57.26 2,240 32.25 81.69% Jiuding Capital

300028 Geeya Technology Sichuan Broad IT 11.30 45.20 3,700 20.50 81.42% Xinao VC,
Hangyuanfu VC,
Dehui Investment,
Jiaze Investment,
Florin Investmen,
Fengze
Investment,
Jiuding Capital
300011 Beijing Dinghan Beijing Broad IT 37.00 82.22 1,362 66.70 80.27% China Venture
Technology Capital
Xingye VC

300001 TGOOD Electric Shandong Traditional 23.80 52.76 3,500 42.00 76.47% Qingdao Laoshan
Technology
Investment
300015 Aier Hunan Bio/Health 28.00 60.87 3,350 48.86 74.50% IFC
Ophthalmology care
Fortune VC

300017 ChinaNetCenter Shanghai Broad IT 24.00 63.16 2,300 41.50 72.92% CDF-Capital,
Fortune VC, VIC,
Fuwei VC
SZVC, Fortune
VC
300002 Ultrapower Beijing Broad IT 58.00 68.80 3,160 100.10 72.59% Huijinlifang and
Gold Stone
300006 Lummy Chongqing Bio/Health 16.50 47.83 2,300 27.45 66.36% Chongqing
Pharmaceuticals care Technology VC

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300023 Bode Energy Shaanxi Traditional 19.60 81.67 1,500 32.56 66.12% 　
Equipment
300019 Chengdu Guibao Sichuan Traditional 23.00 47.96 1,300 38.01 65.26% 　

300007 Henan Hanwei Henan Traditional 27.00 60.54 1,500 44.00 62.96% Ningbo Junrun
Electronics Investment
300016 Beilu Beijing Bio/Health 17.86 47.89 1,700 29.00 62.37% Beijing Venture
care Capital
Infotech

300026 Chase Sun Tianjin Bio/Health 60.00 49.18 1,259 97.15 61.92% TJVC
care
300013 Xinning Logistics Jiangsu Traditional 15.60 45.48 1,500 24.50 57.05% Jinrong
Investment
Taihe Investment,
Yiwen Venture
Capital, Ninghe
Investment
300010 Lanxum Beijing Broad IT 18.00 51.49 2,650 28.10 56.11% China-Belgium
Fund
300008 Bestway Marine Shanghai Services 27.80 40.12 1,260 43.15 55.22% Shanghai Zichen
Investment
300020 Silver River Zhejiang Broad IT 20.00 52.63 2,000 31.00 55.00% ZVC, Haitong
Kaiyuan, Zhejiang
Lanshan
Intel Capital

300004 Nanfang Venilator Guangdong Traditional 22.89 46.24 2,400 35.00 52.91% Tongying VC
(Excluding
Shenzhen)
300012 Center Testing Shenzhen Traditional 25.78 59.95 2,100 38.00 47.40% 　
International
300018 Zhongyuan Hubei Traditional 32.18 52.62 1,635 47.00 46.05% China-Belgium
Huadian Fund
Source: Zero2IPO Research Center 2009.10 www.zero2ipo.com.cn

A Total of 46 VC/PE Institutions Once Invested in the 23 of the First-batch ChiNext-listed Enterprises.

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The statistics of Zero2IPO Research Center show that in the 28 first-batch ChiNext-listed companies, 23 were supported by a total of 46 VC/PE
institutions. Among them, four foreign VC/PE institutions accounted for 8.7%. They are Intel Products which had invested in Silver River, Warburg
Pincus’s subsidiary Brook which had invested in Lepu Medical, IFC which had invested in Aier Ophthalmology; two joint venture VC/PE institutions
taking up 4.3% of the total are respectively China Equity which had invested in Huayi Brothers, and China-Belgium Fund which had invested in
Zhongyuan Huadian; A total of 40 local VC/PE institutions accounted for as high as 87.0%. Among them, Jiuding Capital and Gold Stone performed
more prominently each with two investees landing on ChiNext in the first batch, while Fortune VC’s performance was undoubtedly the most eye-
catching one with 3 investees initially listed on ChiNext.

Table 2 46 VC/PE Institutions with Investment in First Batch of ChiNext-listed Enterprises

VC/PE Type No.of Company Name Stock Code Headquarte Industry Industry Shares Am. Financed Issue P/E
Enterprises rs (Grade 1) (Grade 2) Issued in Price Ratio
Backed (10,000 Plan（RMB10
shares) 0M）

Fortune VC Domestic 3 Eve Battery 300014 Guangdong Clean-tech Clean 2,200 2.06 18.00 54.56
(Excluding Energy
Shenzhen)
Aier Ophthalmology 300015 Hunan Bio/Healthcar Medical 3,350 3.40 28.00 60.87
e Services
ChinaNetCenter 300017 Shanghai Broad IT IT Services 2,300 2.42 24.00 63.16

Jiuding Capital Domestic 2 Gifore 300022 Sichuan Services Retail 2,240 1.98 17.75 57.26

Geeya Technology 300028 Sichuan Broad IT Broadcasting 3,700 1.85 11.30 45.20
(DTV)
Gold Stone Domestic 2 Ultrapower 300002 Beijing Broad IT IT Services 3,160 5.03 58.00 68.80

Shenyang Siaxun 300024 Liaoning Broad IT Other 1,550 2.79 39.80 62.90
Electronics
Products
Qingdao Domestic 1 TGOOD Electric 300001 Shandong Traditional Electronic 3,500 4.00 23.80 52.76
Laoshan Equipment

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Technology
Investment
Huijinlifang Domestic 1 Ultrapower 300002 Beijing Broad IT IT Services 3,160 5.03 58.00 68.80

Guangdong Domestic 1 Nanfang Venilator 300004 Guangdong Traditional Machinery 2,400 2.88 22.89 46.24
Tongying VC (Excluding Manufacturin
Shenzhen) g
Shanghai Domestic 1 Beijing Toared 300005 Beijing Traditional Others 1,700 2.20 19.80 53.10
Leading
Investment
Chongqing Domestic 1 Lummy 300006 Chongqing Bio/Healthcar Pharmaceuti 2,300 1.44 16.50 47.83
Technology Pharmaceuticals e cals/Health
VC Products
Ningbo Junrun Domestic 1 Hanwei Electronics 300007 Henan Traditional Electronic 1,500 1.80 27.00 60.54
Equipment
Jiachuan Domestic 1 Bestway Marine 300008 Shanghai Services Consulting 1,260 1.21 27.80 40.12
Investment
Zichen Domestic 1 Bestway Marine 300008 Shanghai Services Consulting 1,260 1.21 27.80 40.12
Investment
Good Capital Domestic 1 Anke 300009 Anhui Bio/Healthcar Bio- 2,100 1.66 17.00 46.83
Biotechnology e engineering
Gaoxin VC Domestic 1 Lanxum 300010 Beijing Broad IT IT Services 2,650 2.76 18.00 51.49

China Venture Domestic 1 Beijing Dinghan 300011 Beijing Broad IT Other 1,362 2.16 37.00 82.22
Capital Technology Electronics
Products
Xingye VC Domestic 1 Beijing Dinghan 300011 Beijing Broad IT Other 1,362 2.16 37.00 82.22
Technology Electronics
Products
Suzhou Domestic 1 Xinning Logistics 300013 Jiangsu Traditional Logistics 1,500 1.40 15.60 45.48
Jinrong
Investment
Yiwen VC Domestic 1 Xinning Logistics 300013 Jiangsu Traditional Logistics 1,500 1.40 15.60 45.48

Ninghe Domestic 1 Xinning Logistics 300013 Jiangsu Traditional Logistics 1,500 1.40 15.60 45.48
Investment
Taihe Domestic 1 Xinning Logistics 300013 Jiangsu Traditional Logistics 1,500 1.40 15.60 45.48
Investment

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CMTECH Domestic 1 Xinning Logistics 300013 Jiangsu Traditional Logistics 1,500 1.40 15.60 45.48

Beijing Domestic 1 Beilu 300016 Beijing Bio/Healthcar Pharmaceuti 1,700 1.83 17.86 47.89
Technology e cals/Health
VC Products
Infotech Domestic 1 Beilu 300016 Beijing Bio/Healthcar Pharmaceuti 1,700 1.83 17.86 47.89
e cals/Health
Products
Legend Domestic 1 ChinaNetCenter 300017 Shanghai Broad IT IT Services 2,300 2.42 24.00 63.16
Capital
CDF Capital Domestic 1 ChinaNetCenter 300017 Shanghai Broad IT IT Services 2,300 2.42 24.00 63.16

Beijing Vision Domestic 1 ChinaNetCenter 300017 Shanghai Broad IT IT Services 2,300 2.42 24.00 63.16
Investment
SZVC Domestic 1 ChinaNetCenter 300017 Shanghai Broad IT IT Services 2,300 2.42 24.00 63.16

Shenzhen Domestic 1 ChinaNetCenter 300017 Shanghai Broad IT IT Services 2,300 2.42 24.00 63.16
Careall VC
Zhejiang Domestic 1 Silver River 300020 Zhejiang Broad IT Software 2,000 1.70 20.00 52.63
Technology
VC
Haitong Domestic 1 Silver River 300020 Zhejiang Broad IT Software 2,000 1.70 20.00 52.63
Kaiyuan
Zhejiang Domestic 1 Silver River 300020 Zhejiang Broad IT Software 2,000 1.70 20.00 52.63
Lanshan
CAS Domestic 1 Shenyang Siaxun 300024 Liaoning Broad IT Other 1,550 2.79 39.80 62.90
Investment Electronics
Products
Shenyang Domestic 1 Shenyang Siaxun 300024 Liaoning Broad IT Other 1,550 2.79 39.80 62.90
Sengmu Electronics
Investment Products
Tianjin VC Domestic 1 Chase Sun 300026 Tianjin Bio/Healthcar Pharmaceuti 1,259 2.68 60.00 49.18
e cals/Health
Products
Changsha Domestic 1 Geeya Technology 300028 Sichuan Broad IT Broadcasting 3,700 1.85 11.30 45.20
Xinao (DTV)
Hangzhou Domestic 1 Geeya Technology 300028 Sichuan Broad IT Broadcasting 3,700 1.85 11.30 45.20
Jiaze (DTV)
Investment

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Shenzhen Domestic 1 Geeya Technology 300028 Sichuan Broad IT Broadcasting 3,700 1.85 11.30 45.20
Hangyuan (DTV)
Fuchuang
Hangzhou Domestic 1 Geeya Technology 300028 Sichuan Broad IT Broadcasting 3,700 1.85 11.30 45.20
Dehui (DTV)
Investment
Shanghai Domestic 1 Geeya Technology 300028 Sichuan Broad IT Broadcasting 3,700 1.85 11.30 45.20
Florin (DTV)
Investment
Shanghai Domestic 1 Geeya Technology 300028 Sichuan Broad IT Broadcasting 3,700 1.85 11.30 45.20
Fengze (DTV)
Investment
Intel Capital Foreign 1 Silver River 300020 Zhejiang Broad IT Software 2,000 1.70 20.00 52.63

IFC Foreign 1 Aier Ophthalmology 300015 Hunan Bio/Healthcar Medical 3,350 3.40 28.00 60.87
e Services
Brook Foreign 1 Lepu Medical 300003 Beijing Bio/Healthcar Medical 4,100 5.17 29.00 59.56
e Equipment
Warburg Foreign 1 Lepu Medical 300003 Beijing Bio/Healthcar Medical 4,100 5.17 29.00 59.56
Pincus e Equipment
China Equity JVC 1 Huayi Brothers 300027 Beijing Services Media 4,200 6.20 28.58 69.71

China-Belgium JVC 1 Zhongyuan 300018 Hubei Traditional Electronic 1,635 1.85 32.18 52.62
Fund Huadian Equipment
Source: Zero2IPO Research Center 2009.10 www.zero2ipo.com.cn

The First Batch of Listed Companies Is “Best of the Best”, in Which Beijing’s Enterprises Take the Majority.

From the point of view of geographical breakdown, the first batch of 28 ChiNext-listed companies are scattered among 17 provinces and cities
including Beijing, Sichuan, Shanghai, Guangdong (Excluding Shenzhen) and Zhejiang, among which Beijing had the most with seven enterprises--
Ultrapower, Lepu Medical, Toread and so on; Sichuan is also at the forefront, contributing three ChiNext-listed companies, namely, Chengdu Guibao,
Gifore and Geeya Technology; Shanghai, Guangdong (Excluding Shenzhen) and Zhejiang have respectively two companies listed on ChiNext; in
addition, Shenzhen, Tianjin, Chongqing, Henan, Anhui, Hunan, Jiangsu, Hubei, Shandong, Liaoning, Shaanxi and Gansu also each have one
enterprise listed.

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Table 3 First Batch of 28 ChiNext-listed Enterprises (By Headquarters)

Headquarters Stock Company Grade-1 Issue P/E Shares Amt. Gross Net Net VC/PE Year Round Investme
Code Name Industry Price Ratio Issued Finance Profit Profit Assets Institution nt Stage
(10,000 d in Rate in Rate in Income
shares) Plan（R 2008 2008 Ratio in
MB100M 2008
）
Beijing 300002 Ultrapower Broad IT 58.00 68.80 3,160 5.03 50.36% 23.21% 51.58% Huijinlifang, 2009 A Expansion
Gold Stone stage
300003 Lepu Bio/Health 29.00 59.56 4,100 5.17 78.58% 51.07% 39.35% Warburg 2007 N/A Expansion
Medical care Pincus stage
300005 Beijing Traditional 19.80 53.10 1,700 2.20 45.17% 12.03% 27.95% Beijing 2008 A Expansion
Toread Leading stage
Investmen
t
300010 Lanxum Broad IT 18.00 51.49 2,650 2.76 30.09% 13.69% 32.65% Gaoxin 2008 A Expansion
Investmen stage
t
Developme
nt
300011 Beijing Broad IT 37.00 82.22 1,362 2.16 52.16% 21.21% 21.14% China 2007 A Expansion
Dinghan Venture stage
Technology Capital
Xingye VC 2009 B Expansion
stage
300016 Beilu Bio/Health 17.86 47.89 1,700 1.83 41.84% 14.71% 19.57% Qingdao 1999 A Early
care Laoshan stage
Technology
Investment
Infotech 2008 B Late stage

300027 Huayi Services 28.58 69.71 4,200 6.20 53.74% 16.63% 27.44% China 2004 A Expansion
Brothers Equity stage
Sichuan 300019 Chengdu Traditional 23.00 47.96 1,300 1.63 40.61% 18.81% 34.07% 　 　 　 　
Guibao

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300022 Gifore Services 17.75 57.26 2,240 1.98 13.52% 3.68% 29.57% Jiuding 2009 A Late stage
Capital
300028 Geeya Broad IT 11.30 45.20 3,700 1.85 47.13% 25.47% 20.22% Xinao VC, N/A N/A Expansion
Technology Hangyuanfu stage
VC,
Dehui
Investment,
Jiaze
Investment,
Florin
Investment,
Fengze
Investment,
Jiuding
Capital
Shanghai 300017 ChinaNetCe Broad IT 24.00 63.16 2,300 2.42 35.50% 15.51% 25.98% CDF- 2008 B Late stage
nter Capital,
Fortune VC,
VIC, Fuwei
VC
SZVC, 2007 A Expansion
Fortune VC stage
300008 Bestway Services 27.80 40.12 1,260 1.21 48.30% 32.95% 46.53% Shanghai 2007 A Expansion
Marine Zichen stage
Investment
Guangdong（ 300004 Nanfang Traditional 22.89 46.24 2,400 2.88 30.30% 15.13% 26.43% Tongying 2007 A Late stage
Excluding Ventilator VC
Shenzhen） 300014 Eve Battery Clean- 18.00 54.56 2,200 2.06 24.78% 15.32% 24.91% CMTECH, N/A N/A Expansion
tech Fortune VC stage
Zhejiang 300020 Silver River Broad IT 20.00 52.63 2,000 1.70 25.41% 9.02% 19.34% ZVC, N/A A Expansion
Haitong stage
Kaiyuan,
Zhejiang
Lanshan

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Intel Capital 2009 B Expansion

stage
300025 Huaxing Broad IT 19.66 45.18 1,000 1.18 45.17% 14.97% 29.60% 　 　 　 　
Chuangye
Shenzhen 300012 Center Traditional 25.78 59.95 2,100 2.75 68.10% 21.87% 34.05% 　 　 　 　
Testing
International
Tianjin 300026 Chase Sun Bio/Health 60.00 49.18 1,259 2.68 76.38% 34.43% 51.30% TJVC, etc. 2008 A Late stage
care
Chongqing 300006 Lummy Bio/Health 16.50 47.83 2,300 1.44 36.11% 12.40% 23.87% Chongqing 2007 A Expansion
care Technology stage
VC
Henan 300007 Henan Traditional 27.00 60.54 1,500 1.80 59.03% 30.50% 32.53% Ningbo 2008 A Late stage
Hanwei Junrun
Electronics Investment
Anhui 300009 Anke Bio/Health 17.00 46.83 2,100 1.66 70.91% 23.05% 24.26% Good VC 2005 A Late stage
Biotechnolog care
y
Shandong 300001 TGOOD Traditional 23.80 52.76 3,500 4.00 35.52% 22.58% 58.65% Qingdao 2009 A Expansion
Electric Laoshan stage
Technology
Investment
Jiangsu 300013 Xinning Traditional 15.60 45.48 1,500 1.40 50.83% 16.45% 23.71% Jinrong N/A A Expansion
Logistics Investment stage
Taihe 2007 B Expansion
Investment, stage
Yiwen
Venture
Capital,
Ninghe
Investment
Hunan 300015 Aier Bio/Health 28.00 60.87 3,350 3.40 55.43% 13.59% 22.78% IFC 2006 A Expansion
Ophthalmolo care stage
gy Fortune VC 2007 B Expansion
stage
Hubei 300018 Zhongyua Traditional 32.18 52.62 1,635 1.85 55.77% 39.38% 55.11% China- 2009 A Expansion
n Huadian Belgium stage
Fund

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Gansu 300021 Dayu Water- Traditional 14.00 53.85 1,800 1.53 23.14% 9.27% 14.42% 　 　 　 　
saving
Shaanxi 300023 Bode Energy Traditional 19.60 81.67 1,500 1.60 21.06% 11.56% 38.72% 　 　 　 　
Equipment
Liaoning 300024 STASUN Broad IT 39.80 62.90 1,550 2.79 25.75% 11.93% 15.44% Gold Stone 2008 N/A Expansion
Robot & stage
Automation
Source：Zero2IPO Research Center 2009.10 www.zero2ipo.com.cn

Through the first round of screening and counseling by all those brokerage firms, accountants, law firms before the listing, along with the successive
checks made by the Issuance Examination Committee of China Securities Regulatory Commission for ChiNext, the first batch of 28 listed companies
are of relatively good qualifications. Viewing from the financial indicators of enterprises landed on ChiNext in the first batch, 28 ChiNext-listed
enterprises go even farther than those listed on the Main Board, while they all achieved profits in previous three consecutive years. It fully reflects the
principle of “selecting best among the best” and prudent and conservative attitudes of regulatory authorities. On the other hand, viewing from the IPO
P/E ratio, the average IPO P/E ratio of ChiNext was 56.6 times, the highest one, Beijing Dinghan Technology, was even 82.22 times. Compared with
the average IPO P/E ratio of 25 times in A-share market and that of 40 times in Shenzhen SME Board, its high P/E ratios not only fully reflect investors’
expectation on the high growth of enterprises, but also make people full of worry in excitement.

ChiNext’s Future

In the long run, whether the qualifications of listed companies are excellent and the continued growth, innovation and competitiveness of enterprises
can be demonstrated after being listed, as well as what kind of impact will be left on the overall development of ChiNext are affected by the following
factors:

(1) China's economic stability would to some extent affect the scale of ChiNext development. At present, our macro-economy has emerged with trends
of leading the world’s economic recovery and stabilizing upwards. The pace of ChiNext listing progress will be smoother, and ChiNext’s scope will
develop at a faster speed based on the favorable economic situation.

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(2) Adequacy of the resources of backup enterprises for listing. As for the successful historical experiences abroad, whether the backup enterprises for
listing are adequate determines the success to a certain extent: Taking NASDAQ as an example, the United States has numerous enterprise resources
which are in line with the conditions of listing in its innovative economic environment, the abundance of its resources determines the success of
NASDAQ; The success factors for KASDAQ of South Korea are similar to those of the United States. After the Asian financial crisis, economic system
reforms and establishments were carried out in South Korea to encourage business startups, hence fostering a batch of excellent enterprise
resources. However, the GEM of Hong Kong was not successful due to a lack of backup enterprise resources, which led to market liquidity shortage
and a weaker confidence of investors.

(3) Risk of excess liquidity. The launch of ChiNext will attract the attention of international speculators, resulting in the improper inflows of foreign "hot
money"; moreover, it is unavoidable that a large number of short-term capital for the purpose of profit-chasing will be poured into the market
domestically, which causes the stock market to rise suddenly and slump sharply, making the developing situation unstable in the overall market scope.

(4) Rigorous and complete supervisory system is the basis for protecting the market’s normal operations. Only with the supervisory system of ChiNext
completed step by step, can the sudden rises and slumps, as well as the malignant speculations of share market be prevented effectively. It will also
strictly control the information disclosure of listed companies, preventing false information disclosure and even such problems as major shareholders
occupying the interests of listed companies and so on, to maintain the competition orders of ChiNext.

(5) With the “cascade effect” of the stock market, the ups and downs of A-share market will also affect the ChiNext’s trend more or less. While a bull or
slow bull market appears in A-share market, the issuing and listing speed of ChiNext will be faster, but when A-share market is sluggish, ChiNext’s
speed will be slowed down therewith.

(6) Enterprises’ operations after the listing. ChiNext mainly consists of small and medium high-tech firms, while the high growth of high-tech enterprises
accompanied with high risks at the same time, such as operation risk, faith risk, technology risk, market competition risk, financial risk, etc. They will all
be determining factors in the growth of listed companies, thereby influencing the overall development of ChiNext.

In addition, analyzing from the point of view of the stock prices for listed companies, the prices depend primarily on the two aspects, enterprises’

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fundamentals and investors’ confidence. In the initial stage of ChiNext, because of the better qualifications of the first listed companies, investors are
full of confidence and market values are relatively high, while the stock prices fluctuating up and down with the value changes perform powerfully in
this period; Then, as ChiNext gradually steps into maturity and rationality, numerous listed companies will show different growth potentials and
competitiveness, there will be several layers appearing in their stock prices: Share prices for part of the companies with high growth, strong
competitiveness and favorable fundamentals will gradually move up; other companies which face bottlenecks in development, decreased
competitiveness or severe calamity will be sluggish; while individual listed companies will be knocked out from ChiNext if significant financial problems
or false information disclosure and other incidents occur.

All in all, the timely launch of ChiNext in China has great significance. From the perspective of the development of domestic small and medium-size
enterprises (SMEs), it will shorten the timeframe from startups to listing for many national SMEs, allowing excellent new emerging enterprises which
can hardly obtain financing stand out as soon as possible to achieve independent growth and expansion through breaking the monopoly of big
enterprises. Secondly, as the barometer of innovations in business models and technologies, ChiNext can encourage more firms or individuals to
utilize business opportunities and models similar to those of listed enterprises. From the point of view of domestic and foreign VC/PE institutions, the
launch of ChiNext will bring more flexible and convenient exit options for them, thus motivating the investment enthusiasm of VC/PE agencies in
China’s market. It will also promote the fund-raising of RMB funds, facilitating the industrial upgrades of VC investment, truly realizing the positive
cycles of internal capital “domestically raised, invested and exited”. Here we would like to wish ChiNext and Chinese VC/PE industry make further
progress and achieve more!

―――――――
About Zero2IPO Research Center
Founded in November 2001, Zero2IPO Research Center provides professional research reports and customized industry reports for VC and PE funds,
government organizations, intermediaries and startup enterprises in Greater China Region. The center’s research scope covers VC, PE, IPO, M&A
and high-tech industries. It has grown into the most professional and authoritative research institution in China.

Statement on Republication:

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 【Zero2IPO Insight】

The article is publicly released to media by Zero2IPO Group. Any questions and suggestions on data and research, please contact Ms. Leaf Zhang by
phone or email:
Tel: +86 10 84580476
Email: research@zero2ipo.com.cn
If in republication please mail two sample copies to:
Nicole Meng
Rm.1202/03, Tower A, Eagle Run Plaza, No.26, Xiaoyun Road, Chaoyang District, Beijing 100125
Or email the website link of your article to nicolemeng@zero2ipo.com. Thank you.

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