China lift ban for IPO – 150 yuan billion market estimate…
- More than 30 companies, including Everbright Securities, a top-10 brokerage, China State Construction Engineering Corp, the biggest home builder, and China South Locomotive & Rolling Stock Corp, have won regulatory approval and have been waiting for up to a year to go public after slumping stock markets spurred the government to quietly suspend IPOs last September.
- Analysts estimate those companies in the queue alone would raise about 105 billion yuan from equity markets.
- “We have no doubt the firms which have already won regulatory approval will have priority to float shares, and the flotation by the end of this year may well exceed that amount,” said Zheng Weigang, head of research at Shanghai Securities.
- Everbright Securities, China State Construction and China South Locomotive, each planning an IPO of around 10 billion yuan, may receive preference given the government’s aims of building up the financial sector and the country’s infrastructure, analysts said.
- Companies listed outside China that have expressed an interest in floating in Shanghai, such as China Mobile and HSBC Holdings, are unlikely to get the green light this year given the lack of a regulatory framework, including currency-related hurdles, analysts said.
- They also doubted that regulators, who will allow listings to resume as early as next month, would turn on the taps so forcefully as to overwhelm the market’s uptrend this year. The benchmark Shanghai Composite Index has gained more than 40 percent so far in 2009, making it one of the world’s top performing indexes.
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