21 August 1995 00:00 [Source: ACN]
AT LEAST two listed Chinese companies in the chemicals sector plan to issue more shares on the Hong Kong exchange next year, said industry sources in Hong Kong.
Shanghai Petrochemicals and Jilin Chemicals are expected to issue more shares next year, said sources, but declined to give details because the plans were still 'at the early stage'.
Recently, Jilin Chemicals also said it will issue US$120.5m worth of corporate bonds to finance the building of a 300 000 tonne/year ethylene project in Northeast China. (ACN 7 Aug, p7). The group was listed on the Hong Kong exchange in May this year through Jilin Chemical Industrial Company. The exercise raised HK$1.5bn (US$193.8m).
There is also market talk that listed Yizheng Chemical Fibre might tap the market again to finance the fourth phase of its expansion plans.
It is planning to invest some Rmb 14bn (US$1.7bn) to expand its polyester and associated production facilities (ACN 17 July, p4).
Analysts think it is unlikely that there will be new listings of chemical companies within the year and next year because the Chinese government had indicated that the new overseas listings which are likely to be approved will focus on other sectors like power generation, automobile, and transportation.
Petrochemical firms were among the first batch of firms which were approved for overseas listing because of their huge financial requirements, said analysts.
China has already listed five chemical companies on the exchange and together they make up more than 50% of total share capital of H shares on the HK exchange.
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