Companies listed on China’s new NASDAQ-style STAR Market board tech board have emerged as leading investors in wealth management products.
A total of 28 companies have already listed on China’s STAR Market board, raising 41.3 billion yuan in funds.
A report from Securities Daily further indicates that 10 of these companies have made investments in 50 bank wealth management products (WMP’s) with a total value of as much as 5.185 billion yuan in funds.
These WMP’s primarily include structured deposits, agreement deposits, fixed term deposits, combined capital preservation wealth management products and jumbo certificates of deposit.
Major subscribers of bank WMP’s include Espressif Systems (乐鑫科技), Appotronics (光峰科技) and Guangzhou Fangbang Electronics (方邦股份), who have invested 1.05 billion yuan, 900 million yuan and 900 million yuan respectively.
RICOM (福光股份) has also invested a total of 800 million yuan in 10 structured deposit products.
Wang Kun (王锟), senior researcher with the Suning Financial Research Academy, said that the purchase of bank WMP’s by listed companies in China was standard cash management conduct, and an effectve means of raising capital usage efficiency