The Shanghai Stock Exchange

The Shanghai Stock Exchange

Re-enter the dragon

Aug 14th 2008 | HONG KONG
From The Economist print edition

After almost 70 years, Shanghai’s stock exchange is reopening to the world

Illustration by S. Kambayashi

FROM the 1860s until the Japanese invasion of China in 1941, Shanghai’s bustling stockmarket listed not only domestic companies but also foreign firms, such as those now known as HSBC and Standard Chartered Bank, which operated out of the international concession. When trading resumed in 1992, only domestic firms could list. But many foreign ones have been eager to join them, and after a change in securities laws announced on August 6th, some may now have the chance.

The New York Stock Exchange (NYSE) hopes to be the first foreign firm to list in Shanghai, and may have the blessing of the regulators, according to Chinese press reports. But there is competition. HSBC and Standard Chartered are also reportedly angling to return, and other big banks have put out feelers.

Had the opening come in 2007 when the Shanghai market was riding a wave of euphoria for much of the year, the motivation for a listing by any Western company would have been self-evident: money—and lots of it. Conditions, however, have nosedived. Corporate profits may have risen since but share prices are down by half, and there is little appetite left to provide capital to domestic companies.

The first foreign firms to list may be luckier, however, because they offer Chinese investors a rare opportunity to diversify into non-Chinese shares. With lower portfolio risk, local investors would also theoretically be able to pay more for Chinese companies, says William Goetzmann, a professor at Yale University who has published a rare paper on the pre-war ties between China’s financial markets and the rest of the world.

For the newcomers, there would be many potential benefits including, above all, in marketing themselves to the Chinese. For example, just as a listing by the NYSE would confer some status on Shanghai, so would it also encourage Chinese firms to use New York’s main exchange as their market of choice. (The big state-owned ones have largely ignored the Big Board since a listing in 2003 by China Life, an insurance firm, was met by a barrage of American lawsuits, partly because of poor disclosure.) The NYSE’s own members may also find it easier to list in China. As a fringe benefit, it may be able to sell China its trading technology. For other companies, the shares issued in China could be used as a form of currency to provide performance-linked pay to local employees, as well as to buy Chinese companies.

But there are pitfalls. Exchange rules may permit the Chinese authorities to attend the board meetings of listed companies, something that might not bother the NYSE, which does not face competition from Chinese exchanges in its home markets of Europe or America, but would probably horrify a global bank. More importantly, the financial barriers that surround China’s economy, such as its closed capital account, restrictions on currency trading, and prohibition on short-selling, mean that shares in China trade at different prices from those with identical rights listed on other overseas exchanges.

That kind of trading inefficiency looks bad for China and would be an embarrassment for the NYSE, which prides itself on its ability to price shares cleanly. To solve it, the potential entrants are considering how to issue other types of shares known as depository receipts—but that is complicated by China’s trading and capital restrictions. To find a solution, they may have to help China to liberalise its financial markets even further. That would not only benefit the foreigners, but China too—which is probably the main reason it is courting them in the first place.

巨亏400亿,上市公司炒股遭质疑

巨亏400亿,上市公司炒股遭质疑

作者:严钰

随着半年报披露完毕,上市公司炒股巨额亏损也浮出水面。统计数据显示,上市公司今年上半年股市投资浮亏超过了400亿元。在截至8月28日已公布半年报的上市公司中,共有339家公司发生公允价值变动损益。其中,286家公司发生公允价值变动损失,金额合计408亿元;仅53家公司发生公允价值变动收益,金额合计49亿元。 事实上,早在2007年上市公司纷纷炒股,不少企业在股市走牛行情中风光无限。然今年股市掉头向下,那些尚未收手的上市公司炒股业绩立刻“晴转阴”。业内人士称上市公司中报炒股亏损已在预料之中。 中报披露巨亏400亿 此次中报披露中,三一重工证券投资方面持有的79万股深发展在6月底已亏掉1368.64万元,持有的208万股万科则亏掉1049万元。公司还持有已暂停上市的SST北亚150万股。合计来看,公司的初始投资金额为2.23亿元,期末账面价值仅为1.43亿元,亏损8000万元,而公司以16.7元的成本持有1.3万股中国石油目前股价13.6元。 与三一重工有同样遭遇的还有一些老牌绩优的上市公司,佛山照明就是一个典型的例子。为了避免遭受到更大的损失,在港股上市的上海电气更是清仓9亿A股。 此外,有调查显示,在选取沪深两市120多家上市公司,对其证券投资收益状况进行分析调查,结果显示,炒股亏损的71家公司总亏损额竟然高达85亿元。其中,中国平安以巨亏近68亿元高居亏损榜的首位,中煤能、丽珠集团、张江高科等亏损也都超过了1亿元。 专家称炒股应有度 今年以来,沪深A股市场累计跌幅近60%。对于上市公司的深陷泥潭,出现巨额的投资亏损。分析人士称这全是咎由自取。上市公司炒股的行为本来就存在质疑。上市公司募集来的资金只有用来发展主业,这样才能提高公司业绩和资产质量。 对于上市公司的炒股行为,不少投资者也提出了质疑。他们认为,作为公众公司,上市公司应该体现全体股东的利益,而不仅仅是少数管理者、经营者。上市公司炒股赚了,固然好,暂且不说大多数投资者能否分享到其中的收益,至少投资者的利益不会受损。但反过来,炒股亏了,必然损害每一位股东的利益。 专家认为,上市公司过多地涉足股市,其资产必然会发生从实物资产到虚拟资产的质的变化,大大加剧公司的经营风险。而最终的损失,都会由投资者买单。上市公司主营业务利润的比重,在很大程度上决定了公司盈利的稳定性与持久性。

80%资产集中八大行业,央企重组在即

80%资产集中八大行业,央企重组在即

作者:严钰

8月25日,国资委发布报告称,目前中央企业82.8%的资产集中在石油石化、电力、国防、通信、运输、矿业、冶金、机械行业。有分析人士称,国有资产严重向少数大企业聚拢,将直接推进央企重组步伐,国资委对于推进央企改革的力度和决心是空前的。 事实上,李荣融在今年8月的新闻发布会上确认,距离国资委给央企整合制定的80~100家的目标仅剩一年零三个月的时间,央企重组的步伐将在奥运后加快,组合方式将由企业自愿组合转向由国资委主动推进。 随着改革的不断深化,国有经济比重趋于下降,但总量不断扩大,国家综合实力增强。以国有及国有控股工业企业为例, 1998至2006年,全国国有及国有控股工业企业资产总额从7.49万亿元增加到13.52万亿元,主营业务收入从3.36万亿元增加到10.14万亿元,利润总额从525.14亿元增加到8485.46亿元。目前,中央企业承担着我国几乎全部的原油、天然气和乙烯生产,提供了全部的基础电信服务和大部分增值服务,发电量约占全国的55%,民航运输总周转量占全国的82%,水运货物周转量占全国的89%,汽车产量占全国的48%,生产的高附加值钢材约占全国的60%,生产的水电设备占全国的70%,火电设备占75%。在国民经济重要行业和关键领域的中央企业户数占全部中央企业的25%,资产总额占 75%,实现利润占到80%。 分析人士指出,国资委对于推进央企改革的力度和决心是空前的。事实上,除了在《关于推进国有资本调整和国有企业重组的指导意见》提出产业发展战略布局,国资委李荣融多次做出 “三年之内要做到行业前三名,否则国资委给你们找婆家” 的强硬表态;根据国资委的部署,到2010年,中央企业通过战略性重组,企业户数要调整至80-100户,其中有30-50户与世界并轨的超大型国企。国资委网站信息显示,截至目前,有99家中央企业在5年中进行了49次重组,中央企业户数由196家减少到149家。但要在剩余一年多时间达成目标,意味着未来每个月将有3家以上央企从名单中消失。08下半年将进入央企重组高峰期,李荣融便提出奥运后央企重组加速度。

Thomas H Wilkins: US media the last hurdle for China buyouts

 US media the last hurdle for China buyouts

… what if the transaction were a Chinese state-owned enterprise (SOE) offering to buy a US firm? How would US regulators feel about this? What rules would be invoked?

Robert M Kimmitt, deputy secretary of the US Department of the Treasury, has outlined the following three “triggers for policy reviews”. The first is whether the transaction will perpetuate “undesirable underlying macroeconomic and financial policies”. In other words, would the transaction operate “within the framework of sound domestic fiscal, monetary and exchange-rate policies”. The second trigger would be whether the transaction would have an impact on “financial stability”. The third possible trigger for policy intervention would occur when the transaction would take active control of a private company, especially if the company is involved with national security. Even if there are no national security concerns, the third trigger could be invoked if the buyer seeks board seats or unusual voting rights. The acid test is whether the transaction would be classified as a “passive” or an “active” transaction.

China Privately Held Businesses Top the World in Acquisition and IPO; Hong Kong is the Most Bullish in Cross-Border Acquisition

China Privately Held Businesses Top the World in Acquisition and IPO; Hong Kong is the Most Bullish in Cross-Border Acquisition

…mainland China has the highest number of privately held businesses expecting to grow through acquisition (67%) or IPO (60%) in the next three years, far above the global average.

Chinese Funds lose 647.5 billion RMB ($100 billion ) in the first quater of 2008

基金业进入冬天:一季度亏损6475亿

作者:严钰

网络版专稿 记者 严钰 面对A股市场巨幅下跌的系统性风险,基金公司也没有避风港。4月22日,58家基金公司的346只基金2008年一季报披露完毕。除QDII产品外的 342只公募基金,今年一季度总体巨亏6474.99亿元,超过八成基金出现亏损,资产管理规模缩水至24750.44亿元,股票仓位降至74.68%。 Continue reading

34只基金季报披露:股票仓位显降

作者:严钰 发布日期:2008-04-18

http://www.eeo.com.cn/eobserve//finance/funds/2008/04/18/97278.html
网络版专稿 记者 严钰 4月18日,备受关注的基金一季报发布,上投摩根、工银瑞信、融通、银华、益民5家基金公司披露旗下34只基金2008年一季报。季报显示,在股市大幅调整的情况下,基金股票仓位明显下降,股票仓位平均降幅超过7个百分点。

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