Electronics News
- Way cleared for red-chip return
Date: 11-Jun-2007 Sources: (Shenzhen Daily)
THE securities regulator has drawn up rules to allow non-mainland registered, Hong Kong-listed domestic firms, known as red chips, to list on the mainland's bourses, two newspapers said Friday.
The proposed regulations set criteria from market value to earnings and removed the main obstacle to long-awaited listings by firms from China Mobile Ltd. to CNOOC Ltd.
An increasing number of such corporations, including top global wireless firm China Mobile, offshore specialist CNOOC, world No.4 PC maker Lenovo and top retailer Gome, have said this year they hoped to be among the first batch to list in Shanghai or Shenzhen, once regulations allow.
Among draft rules, a red chip has to be listed in Hong Kong for more than a year with a market capitalization of at least HK$20 billion (US$2.6 billion), cumulative net income of at least HK$2 billion over three years, the Wen Wei Po and Ta Kung Pao cited Caijing magazine as saying.
At least 50 percent of listing candidates' operating assets or earnings must come from the mainland.
The newspapers said at least 20 firms would be eligible for listing under those criteria.
Sponsor Results:
