Daya Bay nuclear plant joins ranks of listing hopefuls
A number of infrastructure projects, including Guangdong Nuclear Power Station at Daya Bay, have applied to the mainland securities regulator to issue shares abroad, capitalising on Beijing's call for faster fixed-asset investment to spur growth.
Investment bankers said the China Securities Regulatory Commission had asked each province and ministry to recommend two enterprises to be selected for the fifth batch of H-share candidates.
The enterprises have to attach to their applications a research report and recommendation by investment banks.
Sources said the Daya Bay nuclear plant phase one, 25 per cent owned by CLP Holdings and 75 per cent by Guangdong Nuclear Investment, had filed an application. HSBC Investment Banking, ABN Amro Rothschild and Paribas are front runners to sponsor the mandate.
Preliminary proposals are that only the mainland interest will be floated.
According to CLP's annual report for the year to September 30, the Hong Kong firm shared $378 million in pretax profit from the Daya Bay plant, which equates to the plant making $1.51 billion.
In Zhejiang, the provincial government has proposed the flotation of infrastructure projects in Wenzhou and the tourism industry in Hangzhou. Sources said the Wenzhou arm will include the Wenzhou Bridge which opened to traffic in May.
Sources said Guangxi, Shandong and Hebei provinces planned to list infrastructure projects, while Sichuan would float power firm Bashu Power.
Other potential candidates are Beijing's Capital Airport, Air China, Tianjin Economic Development Zone and Heilongjiang Beidahuang Agribusiness Corp.
Investment bankers said infrastructure stocks are defensive with stable earnings streams, compared with heavy industry stocks which dominate the H-share sector.