Mainland investors could be priced out of Qingdao listing

AN official at China's Qingdao Brewery, producer of Tsingtao beer, warns that Hongkong's frenzy for new China stocks could jeopardise the ability of Chinese investors to participate in the company's mainland share flotation.

The factory plans to list simultaneously on the stock exchanges of Hongkong and Shanghai as early as May.

The official said preparations were proceeding smoothly, but in a reference to recent cases of heavy oversubscription of new China-play listings on the Hongkong exchange, he noted there was concern that the issue would be ''too hot'' in Hongkong and would price Chinese investors out of the Shanghai listing.

Following the recent appointment of international accounting firm Arthur Anderson to audit the brewery's accounts in preparation for listing, a merchant bank would now be appointed to manage the flotation, on February 20, he said.

Seven merchant banks - shortlisted from a field of 30 which had submitted proposals - will meet company officials next week before a decision is made.

The 90-year-old company, located in the coastal city of Qingdao in the northern province of Shandong, hopes it be the first among nine state-owned enterprises anointed by China's State Council to list in Hongkong.