Chinese companies moving inland to jump the IPO queue

NANCHANG - In an attempt to find a shortcut to an IPO, Chinese companies are breaking with tradition and moving from big coastal cities to small inland towns. VST Automotive Navigation Co Ltd is one of the firms seeking to benefit from fast-track IPOs intended to help tackle poverty.

Six months ago, VST moved its headquarters from the throbbing southeastern metropolis of Shenzhen to Le'an, a previously anonymous impoverished county in eastern China's Jiangxi province.

"In 2018, VST expects to generate revenue of 500 million yuan ($79 million) and pay 20 million yuan in taxes," said Wen Zheng, president of VST, which had been doing very well in Shenzhen. The firm is now recruiting more than 200 staff in Le'an.