A-share listing process to be accelerated for foreign firms

BEIJING - The China Securities Regulatory Commission (CSRC) is accelerating the listing process for red-chip and foreign companies on the A-share market, CSRC Chairman Shang Fulin said on Tuesday.

The international board for listings of overseas companies is likely to make its debut in Shanghai later this year and the regulator is reviewing the final draft of the listing rules.

Shang made the remarks at a CSRC meeting of the Issuance Examination Committee in Beijing. The committee, which reviews share issuance applications under the securities watchdog, elected 25 new members on Tuesday.

The launch of the international board is being widely watched as it is considered a key step in making Shanghai an international financial center. HSBC Holdings Plc, Coca-Cola Co, General Electric Co and Wal-Mart Stores Inc are among the foreign companies that may seek listings in China's A-share market.

Chinese red-chip companies, which have business in the mainland but are listed on the Hong Kong Stock Exchange such as China Mobile, will also return to the mainland fund raising pool through listing on the new board.

The regulator said earlier that overseas companies could list on the new board through initial public offerings (IPO) or depositary receipts traded on Chinese stock exchanges. It is also exploring the possibility of overseas companies issuing yuan-denominated bonds and other debt instruments.

Meanwhile, Shang noted that the regulator will continue to reform the rules on new share issues and said it has achieved its goals in the first stage.

"The IPO pricing system has become more market driven and share allocations have favored individual investors more," he said.

"The price surge on the first trading day has been significantly reduced."

China Daily

(China Daily 05/05/2010 page16)