Many of red chip companies, which have caused publicity when
they plan to return to the mainland's A-share market, have delayed
their schedules.
On August 16, Wang Jianzhou, president of Hong Kong-listed China
Mobile, said that the procedure of returning to the A-share market
is complicated and that his company has no detailed schedule right
now. A week before, Kong Qingping, chairman of China Overseas,
another red chip company, revealed that his company would
temporarily cease their plan to return to the A-share market.
There is a natural tension between the Hong Kong stock exchange
market and the A-share market in regard to listing resources. Last
year, a large number of the mainland's state-owned enterprises went
to Hong Kong for listing. This made Hong Kong the world's second
largest exchange market in terms of initial public offerings (IPO).
Now, however, Hong Kong's good days are fading as the mainland's
A-share market booms.
The growth of an international financial center does not come
from the support of favorable policies, but from open competition.
Therefore, some experts suggest that China should create enough
room for competition between its two financial centers, Shanghai
and Hong Kong to spur their growth. As a matter of fact, the
A-share market still has a very long way to go to improve its
transparency, management and IPO pricing
system.???
For more details, please read the full story in Chinese. (
http://www.caijing.com.cn/newcn/home/headline/2007-08-19/27492.shtml)
(China.org.cn August 20 2007)
