BEIJING (AFX) - Mainland China's four state-owned commercial banks need more time to undergo restructuring before they can list on the Hong Kong stock market, the Hong Kong Commercial Daily reported, citing Lee Yeh Kwong, chairman of the Hong Kong Stock Exchange.
Lee said yesterday that the four state-owned banks need to improve their accounting standards, corporate governance and information disclosure to meet international standards first.
He also said that the Hong Kong stock exchange is in talks with mainland authorities to discuss simultaneous listing of the banks on the mainland and Hong Kong stock markets.
Lee was quoted by the newspaper as saying the mainland government should revise its listing rules, and the revisions are expected to be completed this year.
There are currently about 30 mainland companies that are dual listed on both the Hong Kong and mainland stock markets, most of which are big caps such as China Petroleum & Chemical Corp (Sinopec) (SHA 600028; HK 0386; NYSE SNP) and Huaneng Power International Inc (SHA 600011; HK 0902; NYSE HNP).
But none of these companies listed on the two markets at the same time. Most of them made their IPOs first in Hong Kong and then issue shares in the domestic market.
Hong Kong-listed PetroChina Co Ltd plans to launch a 40 bln yuan IPO in Shanghai in the first half of this year.
Market rumors said that the Bank of Communications, China's fifth largest commercial bank, in which the HSBC holds a 19.9 pct stake, plans to list on both the mainland and Hong Kong stock markets at the same time this year.
Bank of China, one of the four state-owned commercial banks, is also considering a dual listing in Hong Kong and the mainland this year.
But these listing plans have encountered regulatory problems and Hong Kong and mainland stock market regulators need to unify the rules first.
(1 usd = 8.3 yuan)
allen.feng@xinhuafinance.com
al/dk
For more information and to contact AFX: www.afxnews.com and www.afxpress.com
Lee said yesterday that the four state-owned banks need to improve their accounting standards, corporate governance and information disclosure to meet international standards first.
He also said that the Hong Kong stock exchange is in talks with mainland authorities to discuss simultaneous listing of the banks on the mainland and Hong Kong stock markets.
Lee was quoted by the newspaper as saying the mainland government should revise its listing rules, and the revisions are expected to be completed this year.
There are currently about 30 mainland companies that are dual listed on both the Hong Kong and mainland stock markets, most of which are big caps such as China Petroleum & Chemical Corp (Sinopec) (SHA 600028; HK 0386; NYSE SNP) and Huaneng Power International Inc (SHA 600011; HK 0902; NYSE HNP).
But none of these companies listed on the two markets at the same time. Most of them made their IPOs first in Hong Kong and then issue shares in the domestic market.
Hong Kong-listed PetroChina Co Ltd plans to launch a 40 bln yuan IPO in Shanghai in the first half of this year.
Market rumors said that the Bank of Communications, China's fifth largest commercial bank, in which the HSBC holds a 19.9 pct stake, plans to list on both the mainland and Hong Kong stock markets at the same time this year.
Bank of China, one of the four state-owned commercial banks, is also considering a dual listing in Hong Kong and the mainland this year.
But these listing plans have encountered regulatory problems and Hong Kong and mainland stock market regulators need to unify the rules first.
(1 usd = 8.3 yuan)
allen.feng@xinhuafinance.com
al/dk
For more information and to contact AFX: www.afxnews.com and www.afxpress.com