Coca-Cola denies reports of interest in a China stock exchange listing

Coca-Cola Co, General Electric Co and Wal-Mart Stores Inc are among US companies that might consider listing on China's stock exchange, a China-based executive with Swiss banking giant UBS AG said.

John Tang, a Hong Kong-based UBS strategist, said he expects a dozen Western companies with a "strong presence" in China to offer shares in the yuan-denominated A-share market.

"An A-share IPO allows foreign companies direct access to much needed renminbi funding," Tang wrote in a note to clients.

UBS declined a request for an interview.

The US companies would benefit from higher valuations in China's stock exchanges, Tang wrote in the note.

The Shanghai Composite Index has rallied 52 percent this year, boosted by increased lending and prospects for a recovery in Asia's biggest economy.

The index trades at 28 times reported profit, twice the price-to-earnings ratio of the Standard and Poor 500 Index.

China would gain by expanding choices for mainland investors, improving corporate governance and helping the exchanges become more "internationally oriented," Tang wrote.

Coca-Cola and GE spokespersons said the US-based companies were not considering a listing on the Chinese exchange.

"Coca-Cola is not willing to speculate," Kerry Kerr, a spokeswoman for the beverage maker, said in a telephone interview.

GE doesn't have "any current plans to announce" regarding a listing in China, said Anna Eisele, a spokeswoman for GE.

Wal-Mart offices did not answer phone messages or e-mails.

Donald Straszheim, a former Merrill Lynch & Co chief economist who runs Los Angeles-based Straszheim Global Advisors, said US companies probably are not interested in listing in China.

Bloomberg News

(China Daily 07/13/2009 page7)