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According to the Chinese voice of "news in the vertical and horizontal" report, into the 2011, the launch of the International Board has again become the focus of discussion at home and abroad market participants. First, the SFC chairman, Shang Fulin, clearly pointed out that one of the key tasks this year is to promote international board construction. Later, during the two sessions of the Shanghai Municipal Council, Shanghai Mayor Han Zheng also came to blow, saying that now is the international board to launch a good time. Although there is no specific timetable for the launch of the International board, the seemingly distant international board seems to be not far off. The IPO debate around red-chip companies and large, quality multinational companies abroad has been hot again. Who will be the first pathfinder of the International board? International board will also achieve what groups of a share of the idea, but also test what aspects of real strength? Shangliang: At present, we have preliminarily completed the listing, trading and other business rules and technical preparations, in-depth study of information disclosure, in-depth supervision, cross-border law enforcement, investor protection and other important issues, for the launch of the International Board actively create conditions. Not long ago, the Shanghai chairman of the SSE Shangliang published such a message, the basic system of international Board preparation work has been preliminarily completed. With the start of the work of the SFC chairman Shang Fulin, the pace of the international board is getting closer. From the statement of the regulatory department, the current launch of the international Board is mainly to promote the internationalization of capital markets process, and contribute to the construction of Shanghai International Financial Center. From this point of view, the introduction of high-quality foreign enterprises is imperative, and they will become the first beneficiaries of the International board. He Shao, director of the high growth market in the Greater China region, said earlier that the introduction of large foreign multinationals would have multiple benefits. He Shao: These multinationals raise money for the renminbi, and then remit the renminbi to foreign currency and use it elsewhere, which also solves some of the problems of liquidity, especially foreign currency liquidity, that can help resolve some policy issues. Our guess is that, from a policy point of view, attracting big blue-chip multinationals abroad is a bit more beneficial to Chinese investors and the economy than red chips. If the management considers these factors, it will give priority to the real international companies. However, many people in the industry do not think so. "Red chips will be the first participants," said Delin, an editorial editor at the Securities Market weekly. Delin: As far as I know, it should be the first red-chip return, because the red chip back, according to my understanding, after all, this is the road of their own enterprises, and in the law, in the accounting system, such as mobile, that he good financial treatment. The second step is the HSBC-type international financial enterprise. There's another reason why HSBC can do it? Because he does have branches in Shanghai, there are a number of branches in China, entities of large enterprises, assuming that IBM or Microsoft in China has not landed, but also the SFC will not consider. Before the outside world also has a kind of voice thought: "Rashly launches international board, will make international board become foreign capital of ATM machine." "In this regard, famous financial critic Shupi that first let red chip return to the International board can effectively form a transition." Water skin: Red-chip companies are domestic companies after all, the concept toLess of a convergence of the trouble is less, and he is not for financing purposes, may be to the purpose of listing, this is a step-by-step process. If the international Board on the domestic now such a circle of money financing, the consequences are very terrible, is tantamount to foreign enterprises in China circle of money, such accusations and charges who can not afford. The discussion of the first return of red chips or the listing of overseas multinational companies has continued since 09 and has never ceased. Obviously, for the Test Water International Board of the pros and cons, both enterprises have their own calculations. Delin says the need for capital may be the first benefit for companies. Delin: Overseas enterprises will have the most direct capital market input pipeline because of capital, and foreign capital may develop more rapidly in China. The return of red chips will speed up the red chips to share the cake of China's high-growth capital markets. But the water skin thinks, to already many listed foreign companies, participates in Shanghai International Board more is sees the Chinese market. Water skin: Globalization is a promotion, may not itself in the circle of money for the purpose, can be listed on the business, in China's influence can be greatly improved. However, there must be lost, the introduction of international boards test the strength of all parties inside and outside the market. Wanguo chief analyst Gui Haoming believes that listed companies in China will be tested first. Gui Haoming: Valuation standards are not exactly the same, prices have a certain gap, it is likely that high prices to the low price to float. If the launch of the International Board, may be in China's blue chip negative impact will be more obvious. In the past, these Chinese enterprises only from the Chinese standards, the future with overseas standards, if these thousand-choice enterprises do not lose to blue-chip enterprises, the Chinese blue-chip enterprises may constitute a greater price comparison, will constitute a corresponding pressure. In fact, not only is the valuation pressure likely to cause big swings in the market, but the diversion of funds is testing more than just the domestic market. Delin said that companies always want to share interests in high-growth markets, so the international board, Hong Kong, Taiwan, Japan, Korea and other surrounding markets will face the pressure of capital. Delin: For example, Hong Kong was very opposed to the International board at Sea and felt that it would divert the capital markets of Hong Kong. Of course, for this reason, the Chinese government specifically proposed in early 2010 to let red chips return, rather than other international companies to the international board first. Of course, Hong Kong has also made some preparations, such as closer co-operation with the Shenzhen stock, and better co-operation on the gem, the SME board, or on financial derivatives. Of course, he would prefer to believe that the launch of the international board has more positive impact. Delin: Just like the capital diversion, of course, there are more positive impact, the financial, regulatory requirements of listed companies really and international standards, requires many enterprises, whether in the enterprise system, or finance, management and so on have a very big improvement. If you can't, I have more options. I believe that the promotion of capital market fundamentals is of great benefit and we should see something positive.
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