It is learnt from China Securities Regulatory Commission (CSRC) that CSRC, foreign capital administrations of the State Council and related local governments will work together to launch pilot project on Initial Public Offering (IPO) in Renminbi by foreign-funded enterprises. They will accumulate experiences in supervision and management, thus to bring forward a set of rules for foreign-funded enterprises to make IPO in China step by step and in the end to permit qualified foreign-funded enterprises to make IPO in accordance with related procedures.
Spokesman for the CSRC Tuesday said that CSRC will properly handle the examining and verifying work for the approvals of foreign-funded enterprises to make IPO in accordance with the "open, fair, just" market rules and the "National Treatment" principle.
As sources say, in view of the characters of foreign-funded enterprises, the CSRC is busily studying and discussing on the new occurrence of problems during the process of listing and on related methods for settlement. For instance, CSRC need to make supplementary regulations to strengthen publishing the information on related transaction and competition of foreign-funded enterprises within the same trade, the information on preferential policies enjoyed by foreign-invested enterprises such as revenue policy, and, the risks possibly resulted from share transfer by foreign founder-member, dilution of foreign capital stock after stock issuance, or the changes of the preferential policies after the implementation of "national treatment", etc.
According to the spokesman, foreign enterprises, which engaged in developing long-term business in China with favorable reputation and excellent business record, are welcome to enter the Chinese stock market. World famous transnational corporations will play a pilot role by developing a better career in the Chinese market. By so doing, China will be able to attract more and more excellent foreign enterprises to develop their business within the country. It is also helpful to improve the structure of foreign capital used by China.
CSRC and Ministry of Foreign Trade and Economic Co-operation have jointly promulgated "Certain opinion to the questions on listed companies involving foreign capital" to regulate the behaviors of foreign-funded enterprises in making IPO in China. It will play a positive role in perfecting the structure of listed companies in the Chinese stock market, promoting the regulation and development of stock market, and, enhancing its attractiveness to foreign capital.
After more than ten years of development, the scale and principal part of the Chinese market have been gradually expanded, the spokesman added. The structure and systems of the market have been improved. Conditions have grown mature for accepting more foreign-funded enterprises to enter the market and make IPO in accordance with related regulations and orders, he said.
(People's Daily November 15, 2001)
