BIZCHINA / News
Mainland IPOs may set record
(Shanghai Daily)
Updated: 2007-06-07 15:02
Chinese mainland companies are expected to raise a record amount of money
this year in initial public offerings, as they shrug off declines in the
key stock index, Ernst & Young LLP said.
Listings on Shanghai's yuan-denominated A-share market may almost double
to 280 billion yuan (US$36.7 billion) in 2007, from last year's 146.3
billion yuan, according to an estimate by the New York-based accounting
firm.
The "market volatility" in the mainland stock market "won't have a big
impact on companies' listing plans," said Ernst & Young's China IPO head
Terence Ho yesterday in Shanghai. "Chinese mainland companies have much
more desire to list now than they did five years ago."
The mainland's key CSI 300 index trades at an average of 41.8 times
reported earnings, more than double the 16 times average on Hong Kong's
Hang Seng Index, enabling firms to raise more funds. As many as 40
mainland companies are traded in both Hong Kong and the mainland, where
the stocks are priced higher than their Hong Kong issues by between 3.5
percent and eight times, according to Bloomberg News's analytics.
China Mobile, CNOOC Ltd and other Hong Kong-traded mainland companies are
planning to sell yuan-denominated A shares, which may almost double the
amount of capital raised in 2007, Ho said.
(For more biz stories, please visit Industry Updates)
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