China Everbright, the listed flagship of mainland-controlled China Everbright Holdings, saw its share price rise 11.4 per cent to a four-month high yesterday as investors greeted news of its latest asset-acquisition plan.
Analysts said the plan was positive for the firm but the excitement mainly stemmed from the possibility that China Everbright might become the first 'foreign firm' to tap the mainland's vast domestic securities market.
China Everbright said it would have a one-year option to buy 49 per cent of Everbright Securities, which is mainly involved in the underwriting and trading of domestic A shares.
A company source said the China Securities Regulatory Commission had indicated it would consider the purchase as a special case which might act as a pilot for opening the A-share market.
But the securities watchdog said it would not consider other cases at the moment and the A-share market would remain closed to foreigners in the near future.
Also included in the plan was the purchase of China Everbright Financial Holdings for $700 million, to be satisfied by the issue of new shares, a shareholder loan and transfer of property interests.
