China's top coal producer is developing an A-share listing plan
in line with corporate development strategy and government policy,
an insider close to the plan disclosed yesterday.
"The planned A-share listing of Shenhua will turn out to be a
win-win situation for both the company and China's stock markets.
In fact, many energy-related national companies listed overseas are
queuing up for a mainland listing," said Han Xiaoping, executive
vice-president of Beijing Falcon Pioneer Technology Co Ltd.
Hong Kong-listed China Shenhua Energy Co Ltd was reported to
receive injections of assets, including wind-power and coal-fire
power businesses, from its mainland parent company. Chairman Chen
Biting said his firm was also considering an A-share listing and
had set up a committee to conduct preparatory work, according to
Reuters reports yesterday.
Huang Qing, spokesman of China Shenhua Energy Co Ltd, declined
to elaborate on the latest developments of the firm's A-share plan
yesterday.
"Shenhua's injection of wind and coal-fire power into the Hong
Kong-listed arm aims to raise the company's profile in the global
market. It doesn't have too much to do with the firm's mainland
listing plan," Han said.
In his eyes, the high price earning to growth ratio of the
mainland stock markets is the greatest incentive for companies such
as Shenhua to come back.
"Listed both in Hong Kong and on the mainland, well-performing
companies such as Shenhua can get enough funding and be subject to
stringent regulations at the same time. It is, therefore, a good
choice to seek dual listing," Han said.
The A-share listings of energy conglomerates such as Shenhua
can, in return, benefit mainland stock investors by driving up the
stock index and bringing them more investment returns, according to
Han.
(China Daily March 6, 2007)