SHENZHEN'S biggest quoted company, Bao An Enterprises, plans to float Hong Kong subsidiary Heng Feng Investments (China) Development in the territory.
The plan by Bao An, which has only A shares listed in Shenzhen, mirrors that of firms such as Shenzhen Vanke, and is the latest in a growing number of mainland firms seeking to tap foreign capital markets.
In October last year, carmaker Brilliance China Automotive Holdings, a Bermudan-based company, was listed on the New York Stock Exchange.
While issuing B shares for foreigners is common for A share companies wishing to meet a shortage of funds by drawing in foreign capital, Bao An has ruled out such a move.
In Shenzhen yesterday, chairman Zeng Hanxiong said the mainland B share market was relatively immature and the company opted for the Hong Kong market, which he believed could gain access to cash-rich international funds.
He said the proposed listing would give the company a good start and experience in achieving international management and staffing standards.