Thursday, March 06, 2008

China Mobile sees only small China IPO

China Mobile Ltd <> foresees only a small Chinese stockmarket float when its planned listing finally goes ahead, Hong Kong and Chinese media quoted the firm's chief executive officer Wang Jianzhou as saying.

"There are a lot of procedural issues to be resolved, but China Mobile is working hard on returning to the A-share market," the South China Morning Post quoted him as saying.

"For sure, if we are allowed to sell A shares in the mainland market, the size of the offering won't be very big."

"Secondly, in the interest of existing China Mobile investors, it will be better for China Mobile Communications to sell existing shares. This will allow mainland investors to invest in us and protect existing shareholders' interest."

He also said his company did not need a Chinese A-share listing to raise funds.

China Mobile, the world's biggest mobile phone operator, has said it wants to offer shares to mainland Chinese investors once Beijing passes a law allowing listings by "red-chips" - Chinese firms incorporated outside of China and listed in Hong Kong.

But China's security regulator has warned against big share issues, part of a clampdown aimed at propping up stock indexes that have slumped by as much as a third since last year's peaks.

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