FIVE mainland companies will make B-share offerings before the end of the year to meet the quota set by Chinese authorities. The companies are Fujian Yaohua Glass, Nan Shan Power Station Company, United Electronic, Xinya Hotel Group and Hunan Iron & Steel. Beijing officials said earlier they intended to double the number of B-share companies by the end of this year. The China Securities Regulatory Commission also recently indicated the B-share quota for 1995 would be US$1 billion (HK$7.73 billion), 58 per cent more than this year's planned quota. Fujian Yaohua Glass is likely to be the next B share to list on the Shanghai Stock Exchange, after Shanghai Luijiazui Finance and Trade Zone Development. It expects to issue about 80 million shares and raise US$30 million this month. Barclay de Zoette Wedd is the sponsor. Unlike Yaohua Pilkington, Fujian Yaohua only produces middle-to low-end glass products for construction. Nan Shan Power Station will be the next to list in Shenzhen. The company is one of the subsidiaries of the Nan Shan Group. Nan Shan generates a 30 per cent growth in electricity capacity annually. The issue will be sponsored by Wardley Corporate Finance. United Electronic and Xinya Hotel will be listed in Shanghai, while Hunan Iron & Steel plans to float its shares on the Shenzhen exchange. Edward Chan Hung-kai, head of China research at Standard Chartered Securities, said propects for the B-share market had become 'cautiously optimistic' since high inflation showed signs of dropping. But market sentiment would be dull as the Christmas holidays approached, he said.
