In recent years, the development of the auto market makes a lot of independent parts manufacturers expand. They provide assemblies for the domestic automobile business. Some of them become suppliers who offer products for well-known international enterprises. After a long period of accumulation, these companies are not satisfied with the present status. They want to improve their market competitiveness through going public. Among them, there are many transmission and gear manufacturers.

Many companies are preparing for going public. For example, in June, Hangzhou Advance Gearbox Group Co., Ltd. approved the IPO (initial public offerings). This company specializes in producing all kinds of gear drives, including automotive transmission. Besides, it also designs and manufactures powder metallurgical products. It is reported that Hangzhou Advance Gearbox Group intends to issue 101 million shares on Shanghai Stock Exchange. The raised funds will mainly be invested in four projects, including plans to invest 30 million Yuan in the technology research and development projects of automatic transmissions.

Transmission companies seek listing actively; meanwhile, gear companies are not far behind. For example, a company in Zhejiang Province which specializes in automotive gears plans to issue 30 million shares on Shenzhen Stock Exchange and raise about 400 million Yuan. It intends to invest the funds on the expansion project about gear replenishment.

The prosperous automobile market accelerates the trend of going public. Chen Jianxing said that there are three companies in the automotive parts business. Except for one company which is producing automotive transmission, the other two companies are in the production of wheel hub unit and shock absorbers.

There are more and more auto parts enterprises apply for going public when compared to the same period in previous years. There are maybe two reasons. One is that automobile industry plays a more and more important part in the national economic development. Some competitive enterprises in the automobile parts industry are becoming mature with the development of the automobile industry. The other is that sales of many parts enterprises achieve significant growth. It is a good chance for those companies which intend to go public.

Raising funds is the most important objective for companies to go public. But the listing of enterprises is not limited to this. It will have much effect on the other aspects of companies.

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