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Xuchang Yuandong Drive Shaft Listed with Stock Code of “002406.SZ” Yesterday

2010.05.16 Xuchang City Government Views:


Xuchang Yuandong Drive Shaft is the seventh listed Xuchang-based company, making Xuchang the second largest city in Henan province in terms of listed companies. 


On the morning of May 18th, 2008, Mr. Yang Xianbo, Standing Committee Member of Party Committees of Xuchang City, Executive Vice Mayor of Xuchang City and Mr. Liu Yansheng, Chairman, and General Manager of Xuchang Yuandong Drive Shaft rang the SSE opening bell. Mr. Hou Suqing, Director of Henan Securities Regulatory Bureau and representatives of Henan Provincial State-owned Assets Supervision and Administration Commission and Financial Affairs Office presented the celebration. Mr. Lv Changsong, Deputy Director of the Standing Committee of the People’s Congress of Xuchang City, and Mr. Zheng Youquan, Vice Chairman of the CPPCC Xuchang City Committee attended the listing ceremony.


Xuchang Yuandong Drive Shaft is the seventh listed Xuchang-based company, making Xuchang the second largest city in Henan province in terms of listed companies. 


Mr. Yang Xianbo congratulated Xuchang Yuandong Drive Shaft on behalf of the Xuchang government on the reception in the listing ceremony. He said, Xuchang government, over recent years, has dedicated to bring local companies in the capital market better services, helping them go public faster. The effort has been paid off. Seven Xuchang-based companies have been listed and up to 30 are in preparation. Xuchang Yuandong Drive Shaft, in its over 50 years of history, has never ceased to reform and innovate. Since 2004, Yuandong has grown at an annual rate of 35% with 30% market shares. It leads China’s drive shaft industry and contributes greatly to China’s auto industry. Yang hoped Yuandong to grasp this opportunity of listing, making itself a stronger company with a great performance that can bring benefits to shareholders and contribute to society.


Capital is the king of the market economy. Xuchang government will further support capital operation and financing innovations to bring more companies to IPO. Capital market, as an effective platform, will be an engine to Xuchang’s development, said Yang.

The year 2019 marks the fortieth anniversary of China’s Reform &Opening-Up, once again, we meet at the turning point of history. What’s the next step for the game, is there any clear guidance? The answer is affirmative.

Our country is enjoying a good momentum of development, which does not come from the Washington Consensus nor the Beijing Consensus. China’s experience has proved that both the visible hand and the invisible hand are crucial: the visible hand, stands for the government-led reform, and would yield benefits for reform and opening up; the invisible hand, stands for the Marginal Power represented by the private sector, and would improve economic efficiency and tax collection, create jobs and employment opportunities.

Provided that we want to protect and expand the benefits form reform, three simple but mandatory agreements are to be made and followed: No.1 Private ownership must be recognized, protected and treated equally with public ownership constitutionally, both ownerships are scared and inviolable;No.2 Make further clarification of the principal position of market economy, “deepen economic system reform by centering on the decisive role of the market in allocating resources”, as President Xi addressed in the third Plenary Session of the 18th CPC Central Committee;No.3 Implement the guiding principles of “comprehensively promoting law-based governance” of the fourth plenum. The rule of law is essential for economic growth, irreplaceable to protect private ownership, and necessary to encourage innovation and entrepreneurship.

Above are three rules for us to avoid falling into the Middle-income Trap. Assuming that we are breaking systematic barriers to private enterprises’ participation in market economy, and boosting innovation and entrepreneurship of our society, then we are heading towards a promoting direction. We are marching in the path of light, regardless of the ups and downs of Sino-US relationship, the drop in GDP growth rate, or the monetary policy.

These principals also apply on knowing how better to run a business: don’t be hedged by rules and regulations at the beginning, pay more attention to your survival, and you’ll learn more when you start your second business.

For many years, Huawei has been the only Chinese company on the list of the Top 50 R&D Spenders. Regardless of the economy and its income, what Huawei has been doing is investing in its future, dedicated to R&D, continuously and resolutely. This provisional work underscores Huawei’s accomplishments, making Huawei anindustry leader.

So, there are standard answers on how to run a company,which could be summarized as concentration and professional dedication, continuous investment on innovation and trying harder in R&D. Entrepreneurship is also important, every single company needs entrepreneurs to push aside all obstacles and difficulties, to implement strategies and ideas. We, as investors, are destined to look for such outstanding entrepreneurs and their companies, invest in them and partner with them.

At this key point of history, a country, a company, or asingle individual, will all need to find the right path. Four decades after the Reform and Opening-up, it’s time to learn from our experience and stop “wadding across


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