Billions were raised in oversea stock exchange
On October.5, China’s top securities regulator made a public speech. Statistics show that by the end of July, 113.8 billion had been raised by China’s domestic enterprises through being listed on overseas stock markets.
According to China Securities Regulatory Commission’s recent numerical statement, by the end of last July, as much as 154 Chinese enterprises had started initial public offering abroad.
In June 1993, Tsingtao Brewery Corp, China’s first corporation listed out of mainland, was listed H-shares on the Hong Kong stock exchange. Then the boom started.
At the same time, China’s qualified foreign institutional investors were launched, which enable China to open up its capital market to foreign investors.
According to CSRC, by the end of July, nine Sino-foreign securities ventures, 33 joint venture fund management companies, 113 foreign securities institutions and 38 foreign assets management companies were approved by China.
It has also been put on agenda to list high-quality overseas corporations in China. This measure aims at stabilizing foreign direct investments, said by Chen Jian, Vice Minister of Commerce.
We are also informed from CSRC’s recent report that in 2008, China’s listed firms on the Shanghai and Shenzhen exchanges had owned 11.3 trillion revenues totally. Occupying 37.67 percent of the country’s total GDP the same year. This is revealed by China’s securities authorities.
In 2008, profits of these companies remain 1.07 trillion reposefully, occupying 36.31 percent of the profits of all Chinese enterprises, each of which possesses annual sales of more than 5 million Yuan.
According to the CSRC, by the end of 2008, 1625 firms had been listed on the Shanghai and Shenzhen stock exchanges, contributing to the total assets 48.7 trillion Yuan.
By September, as much as 1678 firms had been listed on the two stock exchanges. With the subscription from 10 firms on Sept 25, China had launched the Growth Enterprise Market (GEM) and a Nasdaq style market.
Currently, lots of domestic enterprises are aiming at getting listed on overseas or domestic exchanges, or both. Agricultural Bank of China (ABC) is the only Big Four bank on the mainland that is to be listed. Maybe in the early May or June of 2010, ABC can transfer its shares on the Shanghai exchange.
It is still a riddle whether the bank will also be listed in Hong Kong as a dual listing.
This is where the difference between ABC and China’s other three major banks lies. The other three are – the Industrial and Commercial Bank of China, Bank of China, and China Construction Bank. Several years ago, the three banks had invited foreign banks as strategic investors before listing.
China Life Insurance, acting as China’s largest insurer, had expressed its attention to buy ABC’s share long before. It is hard surprising that it became the competitive strategic investor for banks.
China International Travel Service Corp had set a price range for the offer. This meets the expectations according to most analysts. So now, it is trying to raise 2.6 billion Yuan in Shanghai initial share sale.
According to a filing with the Shanghai Stock Exchange at the end of last month, the company had bought 220 million A shares, or at the price between 10.8 Yuan and 11.78 Yuan, 25 percent of its enlarged capital after the issuance is OK.
Thanks to this range, the Beijing-based company, China’s biggest tourist agency, can raise 2.4 billion Yuan to 2.6 billion Yuan.
In an earlier time, the company had revealed its intention to raise 1.7 billion Yuan for a travel network, duty-free shops and other projects.
Wei Chanjuan, Guolian Securities analyst had approved the company’s measure. Due to the National Day holiday, the tourism-related stocks are easy to run up. So it’s right to put in IPO.
She also confirmed that it was OK to get listed recently.
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