Overseas stock markets eye China's municipal works sector

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Last updated at: (Beijing Time) Friday, September 26, 2003

Overseas stock markets eye China's municipal works sector

Chinese municipal works listed in overseas stock markets are becoming a new target for international investors, said sources from the Hong Kong financial circle Friday in Beijing.

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Chinese municipal works listed in overseas stock markets are becoming a new target for international investors, said sources from the Hong Kong financial circle Friday in Beijing.

D.C. Lee, managing director of Crosby Limited, a professional financing and capital management company of Hong Kong, released the news at China's first national seminar for the privatization of municipal works in Beijing.

According to Lee, if China's municipal works opt to be listed on overseas stock markets, they will be favored by some overseas capital funds for their long-term stable income and risk prevention capabilities.

Currently, several such Chinese companies have chosen to be listed overseas, especially those in the areas of gas supply, water supply and sewage treatment. And more and more foreign companies are stepping into the Chinese market. Such move has shown the great potential of China's municipal works sector, notedLee.

At present, Lee said, the Tianjin Capital Environmental Protection Co., Ltd., which is China's first listed company in sewage treatment, and the Zhengzhou Gas Co., Ltd. are very popularon the Hong Kong stock market.

The shares of Zhengzhou Gas have risen in value from 0.25 HK dollars each to 0.75 HK dollars each, said Lee, an eloquent proof of overseas investors' interest and confidence in China's municipal works sector.

Lee went on to say that there are altogether four large blue chip companies in Hong Kong, with a total value of 33 billion HK dollars (about 273.8 billion yuan), and many investors have looked to the four companies as their long-time investment target.

Overseas capital still shows a great interest in China's municipal works sector, said Lee, suggesting that Chinese gas, power, tap water, heating and sewage works should begin preparing for overseas listing.

As the Chinese government is taking steps to step up the privatization of the country's municipal works and encouraging all forms of capital to participate in the construction and operation of China's municipal works, there will be a favorable investment environment in China, added Lee.

Lee acknowledged that listing China's municipal works in overseas stock markets will be another way for Chinese local governments to introduce foreign capital, besides through cooperation with foreign companies.

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