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Strategies & Market Trends : China Warehouse- More Than Crockery -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (2332)	1/1/2004 3:31:25 PM
From: RealMuLan	Read Replies (1) \| Respond to of 6370

New China issues herald improved transparency By Angela Mackay in Hong Kong Published: January 1 2004 12:11 \| Last Updated: January 1 2004 12:11 China's initiative to improve transparency and the quality of its share markets has started to yield results after a revamped listing committee met for the first time this week and gave preliminary approvals to two companies seeking an initial public offering and a share placement. TCL Corp, one of the country's biggest television and cellular phone makers, plans to raise about US$240m from an IPO which involves the delisting of a subsidiary in favour of a flotation of the entire group. In 2002, TCL Corp reported sales of US$2.7bn and the group last year set up a joint venture with Thomson SA of France to make televisions and DVDs. Separately, the listing committee also approved a proposal by BOE Technology Group to make a private placement of B shares to raise about US$150m to pay off loans made to purchase Hynix Semiconductor's TFT-LCD business. Both deals must obtain the formal approval of the mainland's regulatory body, the China Securities Regulatory Commission. Sources close to the companies said they hoped this would be forthcoming in the next few days. The new committee replaced an 80-strong contingent whose decisions were never made public. Under the fresh arrangement, the CSRC plans to flag pending deals and give listing candidates the chance to vet committee members for bias or vested interests. The committee's 25 members include Nicole Yuen, head of UBS's China equities team, as well as accountants, lawyers and stockbrokers from the private sector, and government officials. Seven of the 25 convened the first meeting to examine the TCL and BOE proposals. TCL Corp's listing will also mark the renaissance of the Shenzhen Stock Exchange. Three years ago, the regulator suspended IPOs on the bourse, channelling new listings to the Shanghai Stock Exchange while it overhauled rules and planned a roadmap for the future of the country's equities markets. Shares in TCL Communication - the 57 per cent owned offshoot that will be subsumed when TCL Corp lists - were suspended on December 26 pending the committee's meeting. Shares in the company had risen 36 per cent to almost RMB25 since the merger and IPO plan was unveiled in October. news.ft.com