|
China has no timetable for new IPOs
(Reuters)
Updated: 2005-12-13 10:05 China has no time frame for resuming initial
public offerings on its primary bourses, state media said on Tuesday, citing the
country's top securities regulator.
"There is no timetable," Shang Fulin, chairman of the China Securities
Regulatory Commission, was quoted as saying by major financial newspapers, when
asked when IPOs would be resumed.
China has not seen a new IPO since May 24 when Sanhua Group Co. Ltd. , an
air-conditioner component maker, sold its shares on the Shenzhen stock exchange.
The halt coincided with the launch of Beijing's second attempt to sell down
some $250 billion in non-traded government shares in listed firms, to enhance
transparency and boost corporate profitability.
A total of 339 listed firms have joined the state share reform programme as
of Dec. 12, accounting for one-third of the market capitalization, Shang was
quoted as saying.
Many expect the unofficial freeze to continue through the end of 2005, as
regulators focus on getting rid of the stock overhang.
The state-owned shares are the legacy of a centrally planned economy,
comprising two-thirds of the market capitalisation, and have weighed on bourses
for years. Beijing first tried to unload them in 2001, but aborted the plan
after markets dived 30 percent in three months.
China's key stock index has fallen over 12 percent so far this year, bogged
down in part by the massive share sale.
|
