IMOT:

China Reportedly Halts Overseas IPOs By State-Owned Enterprises
Vivian Wai-yin Kwok, 02.27.07, 3:29 PM ET

HONG KONG - With Chinese authorities reportedly holding state-owned enterprises back from listing shares overseas and in Hong Kong, at least 12 private Chinese companies are lining up to list on the Hong Kong Stock Exchange, taking advantage of the demand for public offerings of mainland businesses.

State-owned enterprises that have applied to list overseas are being redirected by the Chinese government to float shares on the Shanghai and Shenzhen exchanges, according to the Chinese-language Hong Kong Economic Times, with the aim of boosting the supply of equities so as to cool down the country’s overheating markets .

The China Securities Regulatory Commission hasn’t approved any state-owned enterprises’ applications to list overseas since September, the Economic Times said, without naming sources.

Investment bankers said that only a few state-owned enterprises that had obtained permission before September, such as Citic Bank, will list on the Hong Kong Stock Exchange in the first half of 2007.

Initial public offerings of state-owned assets, including the record-breaking $22 billion debut of Industrial and Commercial Bank of China, provided a shot in the arm to the Hong Kong stock market last year. Lacking such mega-sized floatations this year, Hong Kong investors have turned to betting on private mainland businesses.

Shares in China Huiyuan Juice, which came public last week, surged 80% in two trading days this week. At least 12 more private mainland businesses are queuing up to sell shares to Hong Kong investors in the coming months, with offerings ranging from HK$2 billion to HK$8 billion. The total is expected to be worth HK$38.7 billion ($5 billion).

The 12 include footwear chain Belle, real estate developer Biguiyuan, dairy products maker Xinjiang Gold Cattle Bio and sportswear maker Anta Group