|
China targets overseas-traded companies as IPO resumption looms
(Bloomberg)
Updated: 2006-02-10 11:23 Adding bigger and more profitable companies may help the market better
reflect the economy. The Shanghai Composite dropped 6 percent last year in US
dollar terms, the fourth worst of 78 major stock indexes tracked by Bloomberg.
China's economy grew 9.9 percent, overtaking the U.K. as the world's
fourth-largest.
"We will continue to push big state companies to sell shares in the domestic
market," the commission said in the document. It didn't say when the
consultation period ends or when the rules may take effect.
The regulator proposes to let shareholders sell existing stakes in IPOs,
dropping a rule that restricts companies to selling new shares, according to the
document. Other proposals include imposing minimum profit and cash-flow
criteria, though companies can seek exemption from a three-year profit
requirement.
B Shares
The document didn't contain any policies for B-share initial offerings, which
are "under study", the regulator said.
The Shanghai exchange wants Chinese companies to experiment with converting
hard-currency B shares into yuan-denominated A shares as soon as this year, the
exchange's Zhou said last month.
The government set up B-share markets more than a decade ago for companies to
raise foreign currency. Interest waned as Chinese companies listed overseas and
foreign funds were allowed to buy yuan-denominated A shares. The Shanghai and
Shenzhen B- share indexes have surged more than a quarter this year on
expectations of a merger.
|
