陶冬-中国政府动态.pdfVIP

10 April 2006 Asian Daily China Economics Government seems ready to re-open IPO market in May Dong Tao / Research Analyst / 852 2101 7469 / dong.tao@ ● Our conversations with several government officials last week suggest that Beijing is prepared to re-open the IPO market in May. Given the rebound in the stock market, Beijing is eager to tap into the domestic capital market to raise funds. There is also ample need from domestic capital to participate in the latest wave of privatisation. ● In our view, the only question is when, not whether, the government and regulators will start to approve the IPO applications This could potentially be a new catalyst for another leg up in the stock market rally in Shanghai and Shenzhen, despite new supply. Our conversations with several government officials last week suggest that Beijing is prepared to re-open the IPO market that was shut down in the past three years due to weak sentiment in the domestic A-share market. The government appears to be targeting in May for the relaunch. China had a prolonged bear market during 2001-05, in the aftermath of over-speculation and massive supply in new shares, along with poor corporate governance and regulations. However, market reform launched last May, aimed at converting state controlled stakes into market tradable shares, has been broadly successful, with 70% of listed companies in or near completion of such refo