|3 years ago|
|Chen (S.L. Chen)|
|We are fortunate and proud to have Mr. Chen agree to write for our website. Mr. S.L. Chen (his Chinese name: 陈守廉）will share his valuable knowledge and experience with our subscribers regarding China’s capital market in general and U.S.-traded Chinese stocks and IPOs in particular.
There are several “firsts” about Mr. Chen. He was one of the first Chinese-Americans entering Wall Street as a securities analyst in the early 1960’s. He was the first to recommend and urge Chinese companies to raise capital through IPOs in the U.S. in the early 1980’s. He helped China establish its first government bond market in the late 1980’s and the equity markets in the early 1990’s, i.e., Shanghai and Shenzhen stock exchanges.
Mr. Chen received his B.A. degree from National Taiwan University in Taiwan and his M.A. degree from Columbia University in New York City. Upon graduation from Columbia University, he joined Bache & Co. (now Prudential Securities) as a securities analyst. He later joined PaineWebber and Merrill Lynch in the fields of securities analysis and corporate finance. In the past nearly 50 years, Mr. Chen has established tremendous reputation and respect not only in Wall Street, but also in China and Taiwan.
In the early 1980’s, when Taiwan was in desperate need for a well-regulated and healthy capital market, Mr. Chen was immediately called upon and invited by Taiwan’s central government to help. Under his advice and assistance, Taiwan reorganized its Securities and Exchange Commission and Taiwan Stock Exchange. Also under his guidance, Taiwan began to develop securities analysis and accounting systems to meet international standards. In addition, Mr. Chen introduced the concept of country funds to raise capital for Taiwan industries. Thus, Taiwan Funds were created and have been traded on the New York Stock Exchange since.
With regard to China, as early as 1983, in his keynote speech in a London Finance Conference, Mr. Chen already had the foresight of urging Chinese companies to raise capital in the U.S. through IPOs. Despite the puzzlement and disbelief of the audience, including high-ranking Chinese officials, he continued his effort to bring Chinese companies to the U.S. capital markets. It took ten years for the first Chinese IPO to take place on the U.S. market in 1993. This opened the gate for the current high activities of Chinese IPOs.
In the mid 1980’s, several years following China’s economic reform policy initiated in 1979, China was in a state of chaos regarding the implementation of its financial reform and the establishment of its capital markets. Again, Mr. Chen was called upon and invited by China’s central government to help. Under his advice and assistance, China’s secondary market for government bond trading came into being in 1988, marking the very first securities market in China. Also under his advice and assistance, two organized equity markets, Shanghai and Shenzhen stock exchanges, were established two years later in 1990. China’s capital market was born.
Since then, Mr. Chen has become not only one of the most important and respected advisors for China’s capital markets but also a teacher for Chinese bankers and financiers. For almost two decades, he has trained a large number of financial executives China needed badly. Such training took place either in China or in the U.S. He is guest professor of some 10 top universities in China. (For those who understand Chinese, more background information about Mr. Chen, under his Chinese name, can be searched at Baidu and Google).
In view of the current and future high activities of Chinese IPOs in the U.S., and in view of the necessity for our subscribers to understand the background of Chinese enterprises, Mr. Chen agrees to write periodically for our website beginning with his first article now appearing on our website.