Shares in Sinolong New Materials surged on their first day of trading on the Shenzhen Stock Exchange, making its chairman, Yang Qingjin, mainland China’s newest billionaire. The company, which manufactures film for packaging and industrial use, saw its stock price more than double from its IPO price, leaving Yang’s holdings valued at nearly $1.5 billion.
Established in 2018 and based in Xiamen, Sinolong reported a sales increase in the first half of 2024 compared to the previous year. The company’s partners include global companies such as Marubeni Group, Mondi Group, and Amcor Group. The IPO comes at a time when China has tightened its listing rules, leading to fewer domestic IPOs.
Yang, 58, now joins the ranks of Chinese billionaires, a group that is only surpassed by the United States. However, the number of Chinese billionaires on the Forbes Billionaires List has decreased from the previous year, attributed to declining share prices and tensions with the West affecting foreign investment. Despite being a private sector company, Sinolong’s website emphasizes its alignment with the goals of the ruling Communist Party, emphasizing the importance of party building.
Sinolong’s party building efforts aim to support the Communist Party’s leadership and promote high-quality development through various initiatives. The company’s approach, labeled as “film centripetal force,” focuses on enhancing learning and education, technological innovation competitiveness, humanistic care cohesion, and social responsibility influence, all under the core principle of the “Red Spirit of the Party.”
As China grapples with economic challenges and geopolitical tensions, the success of Sinolong New Materials on the stock market highlights the continued growth and resilience of certain sectors within the Chinese economy. The company’s strong performance on its trading debut underscores investor interest in innovative manufacturing companies that demonstrate growth potential and strategic partnerships with global industry leaders. With Yang Qingjin’s newfound billionaire status, Sinolong’s trajectory in the market is one to watch as it navigates a complex and evolving business landscape.
