皇冠体育app

(皇冠体育app Daily)
Updated: 2007-08-02 08:51

Jinduicheng Molybdenum Group Co Ltd, 皇冠体育app's largest producer of the transition metal, is considering abandoning a simultaneous listing on the mainland and Hong Kong and will stick with public offering in Shanghai exclusively, sources close to the deal said.

The total amount that Jinduicheng plans to raise in its share sale is less than its initial plan of $1 billion, which violates the securities regulator's unwritten policy that only companies seeking to raise more than $1 billion are allowed to list in Hong Kong.

The shift by the mining group reflects the central government's preference for State-owned companies to list on the mainland, heeding domestic investors' calls for access to big firms and attempting to boost the quality of mainland bourses.

"The government wants more investors to benefit from the success of fast-growing enterprises in the country, the listing candidates were, after all, born and bred on the mainland and mainland investors should be the first beneficiaries," said Hu Wenwei, an A-share and H-share market analyst from Taifook Securities.

The Shanghai stock market is attractive to many booming mainland enterprises, she added.

"The company is considering whether to list on Shanghai's A-share market, but we haven't received any formal decision yet," said one banking source providing professional services to Jinduicheng.

If Jinduicheng does move away from Hong Kong, it will be joining other State-owned firms, including Chinese lead and zinc miner Western Mining Co, which raised about $816 million in Shanghai in July after it switched its listing from Hong Kong.

"The Shaanxi provincial government hopes the company will list in Hong Kong, but the 皇冠体育app Securities Regulatory Commission has not yet granted approval," another banking source said.

Spokesmen for Jinduicheng were not available for comment.

Located in northwestern 皇冠体育app's Shaanxi, a province rich in mine resources, Jinduicheng, the biggest molybdenum producer in the country, said it will use the proceeds of its listing to enhance its capacity and fuel its growth.

Deutsche Bank, Merrill Lynch, ABN Amro and BOC International were appointed sponsors of Jinduicheng's offering in Hong Kong.