Xinhua news website applies for Shanghai IPO
Xinhuanet.com makes application to list, following People's Daily website's successful IPO
It will be the second heavyweight state-controlled site to list on the mainland, after the news portal run by , the Communist Party's mouthpiece, raised 527 million yuan (HK$648 million) in April last year.
The securities regulator's website shows Xinhuanet's sponsor is China International Capital Corp.
Reuters reported in 2011 that Xinhuanet might look to raise one billion yuan from the IPO, but the company has not confirmed the amount.
He said Xinhuanet lost the race because it has numerous jumbled subsidiaries.
"Xinhua has countless companies under it, most of which are operating poorly," Xie said.
It is unknown what assets will be wrapped into Xinhuanet for the offering.
Beijing has been encouraging the official news websites to be listed on the mainland stock markets to seek financial support for their growth and to promote Chinese media's influence globally.
Many privately owned mainland sites - such as Sina, Baidu and Tencent - have listed on the Nasdaq or in Hong Kong.
"Many official websites are keen to raise money from the stock market, but whether their IPO will be approved depends on the reaction of the market," Xie said.
Xinhua Network has a registered capital of 155.7 million yuan. The state-sponsored China Culture Industrial Investment Fund said on its website it has invested in Xinhuanet, without revealing the size of its investment.