Special watchdog to oversee listed SOEs

(Shanghai Daily)
Updated: 2007-06-25 13:43

China's stock regulator plans to set up a special department to supervise all listed state-owned enterprises and financial companies in an aim to boost oversight of large-cap counters, a media report said today.

The China Securities Regulatory Commission(CSRC) hopes the department can help improve the supervision system under the scenario that quality state companies, brokers and banks have been actively seeking listings, the Shanghai Securities News reported, citing an unnamed source.

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The report didn't detail when the new supervision body will be established. Officials at the CSRC were not immediately available to comment.

State-held enterprises and financial companies now account for more than 60 percent of the total market capitalization in Shanghai and Shenzhen, which requires adjustments in supervision arrangement, the report said.

The country is also set to embrace red chips, or overseas-incorporated Chinese mainland companies, to list back at home, with most of which featuring big market capitalization.

Companies including Hong Kong-listed China Mobile and PetroChina are expected to sell yuan-backed shares in Shanghai by the end of this year after regulators unveil rules to let red chips land the domestic market, sources said earlier.

As China's state-assets watchdog will encourage large government-owned enterprises to conduct group listings in the new few years, setting up the special department can help form a complete supervision system, the report said, citing industry insiders.

The CSRC now has three supervision departments for mainland publicly-trade companies, which respectively target firms listed in Shanghai, Shenzhen's main board and Shenzhen's small and medium-sized broad.

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