Eager mainland firms await CSRC approval

Starved of capital and almost barred from domestic stock markets, mainland private companies are eager to list on Hong Kong's planned secondary market but are handicapped by silence instead of approval from Beijing.

On Monday an 18-member group of mainland investment bankers, security firm officials and managers of private firms who want to list will go to Hong Kong to meet officials of the stock exchange, accountants, bankers and other intermediaries.

One of them, Lu Tao, vice-general manager of the hi-tech Shenyang Beitai Group, said his company was interested in a listing on the market, which is aimed at small and medium-size companies and is due to start trading at the end of this year.

'We are waiting for the application details and conditions. If they suit us, we will apply. The key issue is the attitude of the China Securities Regulatory Commission (CSRC), which is not clear,' he said.

Only a handful of private companies have received CSRC approval to list on the mainland's two domestic stock markets, although others have acquired already listed companies, often indirectly, to avoid official scrutiny.

Many private firms also have found it difficult to obtain capital from banks.

CSRC officials were unavailable for comment.