Baosteel Group to consolidate before listing shares abroad

Baosteel Group Corp, the mainland's biggest steel producer, will seek a listing overseas, possibly in Hong Kong, though it has yet to decide on the timing and location of the offering, according to its chairman.

The world's fifth-largest steelmaker would need to make international acquisitions or establish an international production base before listing overseas, chairman Xu Lejiang told reporters on the sidelines of the 17th Communist Party Congress in Beijing.

'An overseas listing is a major part of our international strategy,' Mr Xu said. 'We need to first establish the reputation of our products overseas, then we hope to make international acquisitions or establish an international production base before we list.'

The domestic stock market was inadequate for its needs as the 'company wants to compete globally' and not being listed overseas was a hurdle for the company, he said.

Baosteel is the parent of Shanghai-listed Baoshan Iron & Steel. The listed company said earlier this year it was committed to listing on a foreign exchange in the future but that its parent had no such plans.

Mr Xu's comments appeared to suggest the group itself may list overseas. The central government has recently encouraged state-owned industry giants to seek listings of whole companies.