Stocks News
- Shanghai News
Date: 11-Jun-2007 Sources: (Shenzhen Daily)
REGULATORS have approved a backdoor listing on the Shanghai Stock Exchange by Haitong Securities Co., the first approval for a brokerage to list using that method, domestic media reported Saturday.
The China Securities Regulatory Commission gave permission for Haitong, a medium-sized brokerage, to list by merging with Shanghai Urban Agro-Business Co., which already has a listing, domestic securities newspapers said.
The approval is likely to be taken as a positive signal by the stock market, suggesting authorities remain committed to its growth after a hike in the share trading tax triggered a plunge of as much as 21 percent in the past two weeks.
Haitong is one of at least half a dozen securities firms which are preparing to list through the backdoor method or via initial public offerings of shares. Brokerage profits have soared over the last 18 months because of a bullish stock market.
Haitong had total assets of 23.6 billion yuan (US$3.1 billion) at the end of 2006 and made a net profit of 650 million yuan last year, the Shanghai Securities News reported.
The merger with Shanghai Urban will raise its share capital to 3.4 billion shares, after which the company will issue up to 1 billion new shares to take in strategic investors, the newspaper said.
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