Jan. 3, 2007 (China Knowledge) – China Mobile has denied earlier media reports that it will launch its A-share IPO in the first half of 2007.

A China Mobile spokeswoman said that the management had previously said the company will go back to the China stock market for the listing, and that the company  has not received news on the China Depositary Receipts application it made a year before.

Red-chip companies in Hong Kong like China Mobile are not able to list on the Mainland stock markets directly as they are not registered domestically. By using the CDR approach, foreign companies can bypass this regulation. However, no CDR has ever been issued by the State-owned Assets Supervision and Administration Commission.

China Mobile will issue A-shares by setting up a holding company to hold the A-share assets and act as the parent company rather than using a CDR as Beijing has yet to fully open the capital accounts, according to State-media reports last weekend citing sources close to the company.

Related Links:

China Mobile may launch A-share IPO in H1 2007
http://www.chinaknowledge.com/news/news-detail.aspx?ID=5460