Capital Market Faces Bottleneck

- Sep 13, 2018-

2016 and 2017 are two years of rapid development of the lighting industry's capital market. There are more than 10 lighting companies listed on the main board in the past two years, making the listed companies in the lighting industry close to 50 (main boards), and most of the first-line brands in the lighting industry have Enter the capital market. In particular, mergers and acquisitions in two years have occurred frequently. The capital market has boosted the growth of lighting companies.

However, since October last year, the IPO policy of the stock market has changed, and the listing of lighting companies has become more difficult.
The implementation of the deleveraging policy and the trade war have put some pressure on the stock market, causing the stock market to fall. In the past few years, the lighting sector has remained strong in the stock market decline. In the past few months, it has begun to make up the decline. The decline of the lighting sector will have an impact on the subsequent lighting sector mergers and acquisitions. The decline in the market value of the stock market will affect the valuation of mergers and acquisitions, which will affect the success rate of mergers and acquisitions.

Facing the current stage of the capital market, the listed companies must control the rhythm and the financing must grasp the risks.
M&A companies must have a good attitude. With the increase of projects and the increase of project scale, the engineering company's demand for funds increases. In order to maintain the company's development, many engineering companies have chosen mergers and acquisitions, but they can have good prices when the capital market is at a high level. However, as the stock market declines, the market value will fall, and the purchase price will also change greatly, making it more difficult to acquire. How to adjust the mentality is very important. Independent IPO, mergers and acquisitions, and development are all options.