Several foreign-funded firms have applied for restructuring into shareholding companies, a step toward being listed on the mainland markets, a foreign ministry official said Tuesday.
The Ministry of Foreign Trade and Economic Cooperation (MOFTEC) announced last week that foreign-invested companies could apply for listing on the A or B-share markets. Detailed procedures have not been issued yet.
Cao Hongying, deputy chief of foreign investment administration division of MOFTEC, made the point at a press briefing on the fifth session of China International Fair for Investment & Trade (CIFIT).
After being floated, non-tradable foreign shares should account for at least 25 percent of the entire share capital, Cao said.
He said a foreign-funded company can only go public if it has at least five shareholders. Thus wholly-owned foreign firms have little chance for a listing, he added.
The number of applicants for listings can only be announced by the China Securities Regulatory Commission, he said.
Cao also announced that the fifth session of CIFIT is to be held in Xiamen in Fujian Province from September 8 to 12.
CIFIT is the only nation-wide event specifically for promoting foreign direct investment.
(China Daily 07/18/2001)
