Feb. 27, 2007 (China Knowledge) – Large State Owned Enterprises (SOE) are eyeing the A-share market to raise capital for this year due to the bullish stock market and the country’s adequate foreign exchange reserves.

The China Securities Regulatory Commission (CSRC) has stopped approving overseas listings for SOE since September 2006, indicating the securities watchdog’s intention to encourage large companies to raise capital in the domestic market - the impact of the number of domestic share offerings is expected to lower the excessive level of liquidity in China’s equity market.

So far, Beijing Capital International Airport Co. Ltd., China Mobile and Bank of Communications have indicated plans to raise capital in the A-share market. Among them, Bank of Communications is tipped to become the fourth Hong Kong-listed company to go back to the A-share market to raise capital.