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(Nikkei BP Group)

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  • China to Encourage High-Tech Public Offerings
  • March 17, 1999 (BEIJING) -- China will encourage initial public offerings among high-technology firms to foster the nation's technology industries, according to China's securities regulatory authority.
    Zhou Zhengqing, chairman of the China Securities Regulatory Commission (CSRC), said that qualified high-tech firms will be allowed to make public offerings regardless of their scale and ownership.

    Zhou noted that initial public offerings are subject to scrutiny by the CSRC, and some 60 companies failed the process in 1998.

    Eleven high-tech companies were listed last year, raising funds totaling RMB3.9 billion (US$481 million).

    Securities companies are entitled to the same money-raising rights as other financial institutions, and expected to be given access to the inter-bank lending and borrowing market and the bond repurchasing market, Zhou added.

    China's first Securities Law, which was promulgated in December 1998, requires that securities firms be classified into two groups. Companies with registered capital of more than RMB500 million may have access to businesses ranging from underwriting of new stocks to brokerage services, while companies with registered capital between RMB50-500 million will be confined to the brokerage business.

    (Xinhua News Agency)

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    Updated: Tue Mar 16 15:42:14 1999 PDT