The direct financing market in Anhui province enjoyed a boom in January, as local entities raised 83.18 billion yuan ($12.06 billion) through direct financing, up 203.90 percent from the same period a year earlier, said the local government.
The volume brought the province to the eighth place in China and No.1 among six central China’s provinces.
Via direct financing, enterprises can get funds from the capital market, rather than from costly intermediary institutions like banks.
Out of the total funds, 47.29 billlion yuan was raised via equity financing, or financing by selling stocks, compared with 2.33 billion yuan last January. Three Anhui-based companies launched IPOs in January, bringing the total number to 96. Meanwhile, 11 companies were listed on the new over-the-counter (OTC) board, or the N-board, bringing the total number to 312.
Statistics also showed by February, local banks’ outstanding deposits stood at 4.25 trillion yuan, up 17.6 percent year on year, higher than the national average of 10.6 percent. Their outstanding loans grew 16.9 percent to 3.14 trillion yuan, while banks in the country as a whole saw a year-on-year rise of 12.1 percent in the indicator.