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BIZCHINA> Top Biz News
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Assets and equity transactions in Shanghai hit record high
By Wang Bo (chinadaily.com.cn)
Updated: 2009-01-13 18:00 Assets and equity transactions in Shanghai grew 12 percent year-on-year to hit 107.4 billion yuan ($15.70 billion) in 2008, making it the largest market of its kind in China, statistics by Shanghai United Assets and Equity Exchange (SUAEE) showed. As many enterprises' share prices tumbled due to the global financial turmoil, merger and acquisition (M&A) deals in SUAEE remained robust in 2008, accounting for 72.49 percent of the total transactions. Manufacturing, real estate, social service, building construction and retailing are the leading sectors in conducting M&A. State-owned enterprises accounted for one third of total M&A transactions, whose trade value increased 1.45 times from a year earlier. To fuel M&A activities, SUAEE, joining several Chinese commercial banks, launched bank loan service for M&A in December 2008 with a credit line totaling 10 billion yuan. "By now, dozens of companies have applied for the bank loan, most of which are companies with limited liabilities and private enterprises, while the State-owned enterprises did not show much enthusiasm for the service," said Wu Hongbing, vice-president of SUAEE. "Some of the enterprises could get the loan before the Spring Festival," he added. (For more biz stories, please visit Industries)
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