Company gives up on listing

China Communications Construction Company Ltd, the country's bellwether in the infrastructure sector, has given up its plan to float shares on the Shanghai bourse for the short term, its chairman said on Friday.

"Due to the pricing dilemma of A shares and the privatization of two listed subsidiaries, we don't plan to raise money from the Shanghai Stock Exchange in the short run," Zhou Jichang, chairman of China Communication Construction, told China Daily.

The company, which made its debut on the Hong Kong bourse on December 15, has seen its shares jump by nearly 100 percent over the past three months. Its H shares, with the issuing price of HK$4.6, closed 0.667 percent down at HK$8.94 on Friday.

"Because of the soaring price of H shares within such a short time, we find it difficult to price our A shares," Zhou said.

Meanwhile, as the company's two subsidiaries, Shanghai Zhenhua Port Machinery Co Ltd and China Road & Bridge Construction Co Ltd, have already been listed on the Shanghai bourse, China Communications Construction must first take them over.

"We now have 43 percent share in Zhenhua Port Machinery, but taking the remaining 57 percent will be too expensive for us, because its market value totals 45 billion yuan," Zhou said.

Source: China Daily