Stocks News
- A-share issues by HK red chips may be delayed
Date: 17-Aug-2007 Sources: (Shenzhen Daily)
THE national stock regulator may delay A-share issues by Hong Kong red chips until next year as the Hong Kong government has expressed concerns over the possible impact on the city's status as an international financial center, the Shanghai-based Oriental Morning Post reported Thursday.
The newspaper quoted sources as saying that the Hong Kong government has asked mainland regulators to suspend plans to allow red chips to list on the A-share market.
'Once the red chips are allowed to list on the mainland stock markets for financing, it will surely reduce financing activity in Hong Kong,'the newspaper quoted the source as saying.
The red chip companies preparing for A-share listings have already halted their IPO plans, but these could be revived in early 2008, the source said.
Earlier, the China Securities Regulatory Commission is reported to have proposed draft rules allowing Hong Kong red chips to issue A shares. There are 21 red-chip companies which meet the requirements, including China Mobile, CNOOC and China Netcom.
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