Caitong Securities, a Hangzhou-based comprehensive securities firm, has been offering a financial consulting service it created in November 2018 to its corporate clients across Zhejiang, contributing to the high-quality development of the province's finance sector.

4D Bios Inc, a Hangzhou-based technology company specializing in complete solutions and products for plant factories, obtained an 85-million-yuan ($13.3 million) loan it urgently needed in March due to Caitong Securities' financial consulting service.

The company, which spends tens of millions of yuan in R&D activities each year, has been cash strapped since it was founded three years ago. It was confronted with particularly severe financial strain last year due to the COVID-19 pandemic.

Having learned of the situation last October, Caitong Securities formed a team of 4D Bios' financial consultants in cooperation with other Zhejiang-based financial institutions, which then worked to obtain loans for 4D Bios from commercial banks. The team also provided 4D Bios with a comprehensive long-term corporate financing solution involving the design of a shareholding structure and the introduction of strategic investors.

The financial consulting service was an attempt by Caitong Securities to overcome the disadvantages associated with the current separate operation model in the finance sector and create an ability to accurately serve small and medium-sized companies' financial needs.

Benefitting from the service, 10 Zhejiang enterprises, including Maider, Entive, and Liziyuan, have completed their initial public offerings (IPO) on the stock market. The 8,000-plus clients of the service have obtained 87.9 billion yuan in loans and issued 126.1 billion yuan in corporate bonds over the past three years.

A team of financial consultants convened by Caitong Securities hosts a conference to discuss a financing solution for a Zhejiang enterprise. [Photo/zj.zjol.com.cn]