Year-end launch for global board: E&Y
By Chen Li |
July 15, 2011, Friday
|
Print Edition
Print Edition
CHINA is likely to launch the much anticipated Shanghai international board by the end of this year as preparations are now "rushing to the final dash," an Ernest & Young partner said yesterday.
The comments made by Yuan Yongming, a Shanghai-based partner at the global auditing firm, contrasted those made by his counterparts at PricewaterhouseCoopers' China operations which cautioned earlier this month that the country was unlikely to launch the long-awaited foreign board this year "due to complex regulatory and currency issues."
Ernest & Young's optimistic projection was based on the fact that all the preparations, including legal, accounting and trading technical issues, had been cleared while China needed to speed up the globalization of the yuan, Yuan told at a press conference in Shanghai.
"The launch of the new board is just a move to follow this trend," Yuan added.
Shang Fulin, chairman of the China Securities Regulatory Commission, told a financial forum in Shanghai in May that the international board, which will allow multinationals sell shares to mainland investors, was "getting closer and closer."
Ernest & Young expects that red-chip firms - Chinese companies listed in overseas markets - will dominate the first batch of companies on international board, followed by a second batch of foreign international firms.
Currently, more than 80 Chinese firms are listed in Hong Kong, including Baidu, China Mobile and CNOOC Ltd.
Foreign players such as HSBC, Standard Chartered, Bank of East Asia, P&G, Unilever and Royal Dutch Shell all have expressed their interest in listing on the Shanghai board.
But a major concern for foreign companies hoping to list in China is whether the proceeds from an international board listing can be used for businesses outside the country. Chinese investors worry that the new board will make mainland markets even more volatile.
The comments made by Yuan Yongming, a Shanghai-based partner at the global auditing firm, contrasted those made by his counterparts at PricewaterhouseCoopers' China operations which cautioned earlier this month that the country was unlikely to launch the long-awaited foreign board this year "due to complex regulatory and currency issues."
Ernest & Young's optimistic projection was based on the fact that all the preparations, including legal, accounting and trading technical issues, had been cleared while China needed to speed up the globalization of the yuan, Yuan told at a press conference in Shanghai.
"The launch of the new board is just a move to follow this trend," Yuan added.
Shang Fulin, chairman of the China Securities Regulatory Commission, told a financial forum in Shanghai in May that the international board, which will allow multinationals sell shares to mainland investors, was "getting closer and closer."
Ernest & Young expects that red-chip firms - Chinese companies listed in overseas markets - will dominate the first batch of companies on international board, followed by a second batch of foreign international firms.
Currently, more than 80 Chinese firms are listed in Hong Kong, including Baidu, China Mobile and CNOOC Ltd.
Foreign players such as HSBC, Standard Chartered, Bank of East Asia, P&G, Unilever and Royal Dutch Shell all have expressed their interest in listing on the Shanghai board.
But a major concern for foreign companies hoping to list in China is whether the proceeds from an international board listing can be used for businesses outside the country. Chinese investors worry that the new board will make mainland markets even more volatile.
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