Flexibility on China listings, red chips
Date: July 2009
Keywords (click to search): [H-share listings] [A-share listings] [red-chips] [China] [CSRC] [Sichuan Expressway]
By Rachel Evans - ALP
As four companies thaw the freeze on Chinese initial public offerings (IPOs), there are signs that China's securities regulator could relax its restrictions on H-share listings and red chip companies.
Yesterday, Sichuan Expressway became the first large company to be approved for an A-share listing on the Shanghai stock exchange since September 2008. Further A-share IPOs are in the pipeline, but lawyers confirm they are also working on straight H-share listings for Chinese companies.
"We are doing an H-share listing of a state-owned Chinese company that's set to go to market in the third quarter," said Ven Tan at Morrison & Foerster. "The China Securities Regulatory Commission is being a bit more flexible with granting approvals for domestic and overseas listings by PRC companies. It's listening to the market and consulting potential listing candidates and their bankers on where it's appropriate for the company to list."
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