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Technology Stocks : China.com Corp-(CHINA) -- Ignore unavailable to you. Want to Upgrade?

To: Li Cai who wrote (331)	7/18/1999 11:56:00 AM
From: Ellen	Respond to of 504

biz.yahoo.com Sunday July 18, 1:38 am Eastern Time IPO VIEW-China.com fantasy makes HK's GEM sparkle By Alison Leung HONG KONG, July 18 (Reuters) - China.com Corp's (Nasdaq:CHINA - news) stunning debut on the U.S. Nasdaq is likely to strengthen hopes of fledgling technology firms to float their shares on the Growth Enterprise Market, Hong Kong's soon-to-be launched second board. ''I believe this could bring a small fever to the market since the GEM is considered by many as a mini Nasdaq in Hong Kong,'' said Lennon Chan, deputy executive director at Tai Fook Securities. The Hong Kong stock exchange had submitted the listing rules for its Growth Enterprise Market (GEM) to the Securities and Futures Commission for approval with an aim to launch the GEM in October on schedule, an exchange spokesman said. The exchange said earlier this year about 50 companies expressed interest in listing on the GEM, aiming to provide a fund raising venue and trading place for small- to medium-sized high growth companies in the region. Potential sponsors and interested companies were gearing up, waiting for the rules and regulations to be made public, said Adrian Ngan, head of Hong Kong research at BNP-Prime Peregrine Securities. ''Hong Kong's technology companies are relatively new without earnings records, just like China.com,'' Chan said. A main board listing in Hong Kong requires candidates to be in existence for at least three years with profits, while GEM only requires a two-year track record in their lines of business. Gurinder Kalra, vice president of research of Morgan Stanley Asia, also said the strong trading debut of China.com on Nasdaq last Tuesday would help raise the attractiveness for GEM as a venue for a listing among Internet-related companies. Shares of the Internet portal, China.com, closed at US$67.11 on their first trading day, more than triple of its offering price of US$20.0 per share. ''There is still a tremendous appetite towards Internet stocks in the region,'' Kalra said, adding that Nasdaq would hold strong appeal for many technology listing hopefuls. ''I think everyone would still like to list on Nasdaq because U.S. investors determine the valuation. I think it is a pretty good alternative for a listing on the local exchange,'' he added. Stock Exchange of Hong Kong chief excecutive Alec Tsui had said GEM would offer Silicon Valley companies an alternative place to raise funds for China and Asia regional operations. William S. Bowmer, Lehman Brothers senior vice president, said China.com was regarded as a barometer of investor interest in Internet shares. ''Well over a dozen of companies in the region are looking for similar move of seeking a listing,'' he said. These firms included Internet service providers, broadband Internet access providers, portal-based firms and e-commerce companies, he added. A number of telecommunications and technology companies have already expressed their interest in seeking a listing in Hong Kong or on the Nasdaq in the coming year. Chinese-language internet portal site Sohu.com said last week it might seek a flotation in 2000. Its rivals Netease and Sina Inc are also expected to proceed with listing plans. Computer firm Great Wall Technology, indirectly controlled by China's Ministry of Information Industry, is expected to launch an H-share flotation soon on Hong Kong's main board. Boom Securities (H.K.) Ltd, which operates Boom.com, Asia's first Internet-accessible retail securities broker, said last Wednesday it was interested in raising capital through a listing. Chinese telecommunication group China Unicom, formerly China United Telecommunications Corp, is expected to seek a dual listing in Hong Kong and on the Nasdaq before the year end. More Quotes and News: China.com Corp (Nasdaq:CHINA - news) Related News Categories: IPOs, US Market News