Overseas-listed arms of China's top offshore oil producer are
busy developing mainland A-share listing plans to bolster their
business expansion, according to the firm's executives.
CNOOC Ltd, the Hong Kong-listed branch of China National
Offshore Oil Corp (CNOOC), is in close contact with the mainland's
stock watchdog for an A-share listing plan, Chairman Fu Chengyu
said in Beijing yesterday.
Fu added that another two units of the company, China Oilfield
Services Ltd and China BlueChemical Ltd, are also preparing similar
mainland share sales.
Legal issues have persisted as a concern during CNOOC's
discussions with the China Securities Regulatory Commission about
CNOOC Ltd's possible A-share listing, Fu said. But sources from the
offshore oil company said the planned share sales with the other
two listed firms under CNOOC are only a matter of time and internal
planning.
"As far as I know, listing plans are going smoothly for China
Oilfield Services and China BlueChemical. As far as CNOOC Ltd is
concerned, its A-share sales plan might depend on the extent of the
openness of China's stock markets," Liu Junshan, a spokesman with
Beijing-based CNOOC, said.
Liu Gu, an oil analyst with Shanghai-based Guotai Jun'an
Securities Co, said that it is natural for all three listed arms of
CNOOC to seek mainland listing as they seek more money from the
stock market.
"CNOOC Ltd needs greater financial support to expand in oil and
gas exploration and production. China Oilfield Services requires
more investment to boost its capacity, and China BlueChemical needs
more funding in the face of an industrial consolidation to take
place in about two years.
"That is why all of the three listed company are enthusiastic
about a mainland listing," Liu said.
The development of China's stock market provides the impetus for
overseas-listed Chinese firms to return to the mainland to seek
further funding. On the other side of the coin, the stock analysts
said that Chinese firms listed overseas can boost the growth of
mainland stock markets.
But Hong Kong-registered CNOOC Ltd is encountering legal hurdles
along the road to the mainland A-share market.
However, Li points out, national policy absolutely encourages
overseas-listed companies' return to A-share markets.
(China Daily March 6, 2007)