The Nasdaq seems to specialize in IT companies. Is that an accurate view?

As a matter of fact, Nasdaq is where the entire American economy, particularly the creative proportion of it, converges. Intel, a computer hardware manufacturer, came into being in the 1970s, and in the 1980s, software producer Microsoft arrived on the scene. These two giants, both of which are listed on Nasdaq, formed the cornerstone of the entire IT industry. In addition, the rapidly growing network-based era also saw the rise of hardware mainstays like Cisco, and their software counterparts such as Oracle. Both of these are also listed on Nasdaq.

Is Nasdaq primarily a hi-tech exchange?

It is true that Nasdaq started up as a primarily hi-tech and IT-based exchange. As a result, we are proud to have become the biggest breeding ground for IT companies and other hi-tech start-ups. But now, Nasdaq has expanded its business coverage across eight industries, including finance, bio-pharm, healthcare and consumer goods.

So Nasdaq is a composite exchange with broad coverage of various industries?

Yes. Those who enter the market as small start-ups often intend to partner with Nasdaq and share in its growth. At present, the market value of Microsoft is more than $270 billion, and Cisco, Dell and Google are all valued at over $100 billion. These are prime examples of big blue-chips.

What is Nasdaq's single most important feature?

From the very beginning, Nasdaq has employed a trading competition method both electronically based and transparent in its entirety. Efficiency and customer service are considered to be the highest priority.

What is the minimum requirement in terms of tangible net assets?

There is no specific requirement on tangible net assets. However, to qualify, a company should have three years of healthy business income that is expected to reach $11 million. This is, in effect, a higher standard than that of the New York Stock Exchange (NYSE).

What kinds of businesses interest you the most?

The financial sector definitely has our attention. But all sectors within our business range are given due attention. While there are no specific selection criteria, rapid and sustained growth is of key importance.

Nasdaq tends to go easy on a candidate company's performances given the condition of sustained development. Is the future its primary focus?

Yes. If a company has a history of only two years, it's still okay. If a firm foundation is laid during those two years, the company may still make the cut if it sees fast-tracked and sustained development in its future. We rigorously scrutinize every company's financial analysis, financial model and business model.

How can a company develop using Nasdaq?

Being listed on Nasdaq is just the first step in a marathon. If we take a look at some American listed companies, many of them have a history of over 100 years. And even then, they still have a long path ahead. So after taking that first step, you must be mentally prepared for the long and often arduous journey that lies ahead (after the listing). You have to partner and interact with the capital market. In its growth period, a company usually has to be self-reliant. As it grows bigger, other forms of "extended" development begin to weigh in, such as merger and acquisition activity. Be it Microsoft or GE, many companies expand their business scope as a result of successful acquisitions. But acquisition plans cannot proceed without assistance from the capital market, where monetary support and professional counseling are plentiful. [It is important] to treat the capital market as a true partner. A company must communicate fully with the capital market if its sights are set on development, innovation and overall progress. The capital market has to be well advised of where the company is weak or strong and what difficulties and opportunities it faces. Open communication is critical after the company is listed. Some companies, in the face of setbacks or during hard times, may not experience fluctuations in their valuation. The market in response may remain calm, or even drive the company's value higher. Whatever the outcome, it will be a direct result of the public learning of the company's vision.

What advice can you offer to companies with their sights set on a Nasdaq listing?

Nasdaq now includes 29 China-based companies, a number that rises to 50 with the inclusion of Taiwan- and Hong Kong-based firms. It is fair to say that Chinese mainland companies have listed on the Nasdaq in phenomenal numbers. The two factors that drive a company forward are the company itself and the capital market. It requires great study and efficient use of the Nasdaq, one of the world's best capital markets, to boost your company's business and core competitiveness, particularly in the area of IPR, to become a leader in the new economy.

(Xinhua Finance)

DISCLAIMER: The information contained herein is based on sources we believe to be reliable, but is provided for informational purposes only, and no representation is made that it is accurate or complete. This briefing should not be construed as legal, tax, investment, financial or other advice, and is not a recommendation, offer or solicitation to buy or sell any securities whatsoever.