Biz Scene: GRAPEVINE

HK listing for coal miner

Sichuan-based Yongchuang Coal aims to raise up to $1.5 billion in an initial public offering in Hong Kong later this year, the South China Morning Post reported yesterday. The report cited sources as saying the company has not yet awarded a mandate to investment banks. It gave no further listing details.

The report said Yongchuang Coal's would be the third proposed offering by the coal industry this year, following Shanxi Coking Coal Group's planned $1 billion Hong Kong IPO, and Yongcheng Coal & Electric Group's proposed $1.5 billion offering.

Heilongjiang Longmay Coal Mine Group had to scrap its $1 billion IPO plan because of safety issues at its mines, the report said.

New stock exchange

China is likely to launch a new exchange with lower listing requirements aimed at start-up companies by 2008, Reuters reported, citing an industry analyst and a regulatory source. The exchange would be similar to the NASDAQ Stock Market or Hong Kong's Growth Enterprise Board, allowing a platform for newer companies that focus on technological innovation to list.

"There is little chance for the board to be launched this year," said Liu Jipeng, a professor at Chinese University of Politics and Law. "However, it's very likely that we will have it next year."

(China Daily 04/03/2007 page15)