Multinational M&A express channel launched to lure more investment
(China Daily)
Updated: 2004-03-15 09:38

The China Beijing Equity Exchange - one of the major exchanges for the trading of State-owned assets and assets with other types of ownership - has joined the Beijing Investment Promotion Bureau to launch the so-called "Multinational Merger and Acquisition Express Channel."

They say the move is a major step to further improving Beijing's investment environment for domestic and overseas investors.

The purpose of the co-operation is to better serve investors looking for mergers and acquisitions (M&As) of State-owned assets listed on the exchange, thus helping to attract foreign direct investment (FDI) to the Chinese capital.

The exchange and bureau will make use of their advantages to share project and member information, jointly launch project promotional activities at home and abroad, provide policy consultation and guidance services to international investors, and co-ordinate links between international investors and government organizations.

They will also accelerate the process of examination and approval, and assist investors handle the procedures of merger and acquisition deals, according to the agreement signed by the two sides at the weekend.

The China Beijing Equity Exchange is the only platform for equity trading in the Chinese capital, its President Xiong Yan said.

According to earlier reports, the total volume of equity trading in Beijing hit 72.4 billion yuan (US$8.74 billion) last year.

In the coming three to five years, the figure is expected to hit 200 to 300 billion yuan (US$24.16 to US$36.24 billion).

This prediction is echoed by Xiong, who said Beijing has only just started its strategic readjustment of the State-owned assets sector. As a result, his exchange enjoys great advantages compared with equity exchanges located elsewhere in China.

In Beijing, the ratio of State-owned equity amounts to over 50 per cent of the total while in East China's Zhejiang Province, where the non-State economy is developing very quickly, the ratio of State-owned equity only accounts for about 10 per cent.

The situation leaves great potential for the future development of State-owned assets trading.

The Chinese Government is making efforts to encourage the development of the non-State sector and down-size State-owned assets in many sectors.

Therefore, an increasing number of State-owned companies and projects are expected to be listed on domestic equity exchanges for M&As by domestic and international investors.

Zhang Jifu, deputy director of the Beijing Investment Promotion Bureau, said equity exchange has a very bright future in China. His bureau will co-operate with the Beijing exchange to better serve investors and promote FDI in Beijing.