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Huge Potential for Overseas Financing
Wu Changgen, Managing Director of Morgan Stanley Asia made a remark recently that the restructuring and listing of Chinese SOEs is an irreversible trend and it is projected that SOEs can raise funds of 20 billion dollars in international capital market.
Having recently succeeded in recommending the listing of China's Unicom in USA and HK, Wu Changgen analyzed the characteristic of Unicom's listing and pointed out that the brisk market demand expresses consumers' confidence in China's telecommunication market. The successful listing of Unicom has set an example for SOE's listing, and through this action the SOEs can also learn about investors' requirements, which can help raise the interest of international market in SOEs, thus creating favorable market environment for their overseas listing later.
Wu also noted that upon China's entry into WTO, it would need to enhance the strength of large enterprises in the aspects of capital and technology. To take a part in the global economic integration, China needs transnational enterprises. By restructuring and listing, the large-sized SOEs have set a firm step forward for developing transnational enterprises in China.
Wu points out that international market also needs such a flagship enterprise as China Unicom. Judging from the present marketplace, investors are more interested in telecommunication and high-tech industries but this doesn't mean other types of enterprises have no opportunities. Investors are flexible, different investors have different demands, and the interests of investors at various stages vary too. So, the overseas listing for the other types of China's large SOEs still has huge potential. The SOEs in different industries will by and by join in overseas market on different occasions and at different times. In view of the reform the SOEs are tending to, the forward pace will be further hastened.
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