Biz Scene: Market

Regulatory approval

China International Capital Corp, 34 percent owned by Morgan Stanley, has received approval from the China Securities Regulatory Commission to set up a private-equity arm to invest in closely held companies.

The company, also known as CICC, was granted a license on September 10 by the nation's securities regulator, Tracy Hu, a spokeswoman for the Beijing-based securities firm said. The arm will be a wholly owned subsidiary, Hu said.

Private-equity investments may help local brokerages boost profits and make them less reliant on stock trading and underwriting fees.

Hotel stake

Beijing Capital Tourism Co said it would raise as much as 791 million yuan through an issue of new shares to fund the purchase of controlling stakes in three Beijing hotels.

The company said yesterday it would issue up to 25 million new A shares, or nearly 10 percent of its expanded share capital, to buy the stakes from its parent and an affiliated venture.

Beijing Capital Tourism, which runs major Beijing hotels including Minzu and Jinglun, said the shares would be sold at no less than their average market price over 20 days running up to the release of the prospectus, and no less than their average price the previous day.

Stocks recover

China's main stock index gained 1.15 percent yesterday after a 4.5 percent plunge on Tuesday. The Shanghai Composite Index closed 58.66 points higher at 5172.63. Turnover in Shanghai A shares was moderate at 149.24 billion yuan. A total of 483 companies gained while 282 saw losses.

(China Daily 09/13/2007 page15)