Seizing the Opportunity: Funding growth in China's Consumer Markets
China's Consumer Markets represent an immense opportunity, with growth supported by government stimulus measures and increasing per-capita GDP in cities across the country. Companies need to assess their funding options in order to manage expansion and capture this opportunity. It is an opportunity that both domestic and international brands are keen to manage; for domestic brands, an initial public offering (IPO) on one of China's stock markets has been a popular route to raise capital.
To qualify as a listed company, a company should have a solid financial base, strong internal controls, clearly-structured management and effective execution. A new KPMG report provides advice on choosing a listing location, pre-listing preparation, tax planning during the listing process, establishing an internal control mechanism, and post-listing compliance.
The KPMG report focuses on the development of China's Consumer Markets sector and includes interviews with two companies that have listed as well as another company preparing for listing: China Mengniu Dairy Company Limited (Mengniu), BaWang International (Group) Holding Limited (BaWang Group) and South Beauty Catering Management Group (South Beauty Group). These three companies are engaged in different areas, have different operational models, and all represent different stages of development in the capital markets.
For Mengniu, a long-time listed company, the move proved to be a stepping stone for the next stage of its development. BaWang Group, a newly listed company in Hong Kong, has demonstrated that transforming a company into an international brand can help capture opportunities in the capital markets. South Beauty Group, meanwhile, a company preparing for its listing, highlights the importance of standardised financial procedures, stringent internal controls, advanced IT systems and defined management processes for a successful listing.
KPMG China's new publication is produced in Chinese, with an English version due soon. Click here for the Chinese version and to request a copy of the forthcoming English version contact us through enquiries@kpmg.com.hk.
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