Mongolia Names Hong Kong Top Fundraising Market for State Firms

By Hanny Wan

April 12 (Bloomberg) -- Mongolia named Hong Kong as its first-choice market for state-owned assets to raise money from the nation's largest trade partner, China.

Major state-owned companies and assets in energy- and infrastructure-related industries are among those that will seek to raise money selling shares in international and local stock exchanges, Mongolian Prime Minister Sukhbaatar Batbold said. He didn't name any companies or give a timeframe for listings.

"We have chosen Hong Kong specially," Batbold said at a forum on listing of Mongolian companies in the city today. "Hong Kong is a natural choice for us as a funding source and source of expertise because it's the best gateway to Mongolia's largest trade destination."

Hong Kong Exchanges & Clearing Ltd., operator of Asia's third-largest bourse, is trying to attract more listings of overseas companies, particularly those with businesses in China and Asia. Funds raised through initial public offerings surged 276 percent to HK$248 billion ($32 billion) in 2009 from a year earlier, the bourse said March 4.

Batbold added that Mongolia also has an "aggressive agenda" to develop its own capital markets and would seek further cooperation with Hong Kong's stock exchange in that area.

The exchange expects five to 10 Russian companies to seek listings in the city in the "next couple of years," Chairman Ronald Arculli said Feb. 18. The first, United Co. Rusal Ltd., debuted in January. In addition to Russian and Mongolian firms, Hong Kong Exchanges also talked last year with potential listing companies in Australia, Japan, Korea, Taiwan, the U.K. and Vietnam, it said.

SouthGobi Listing

The bourse's executives have visited Ulaanbaatar, Mongolia's capital, five times since 2007, Arculli said.

SouthGobi Energy Resources Ltd., the Canada-listed mining company backed by China's sovereign wealth fund, sold shares in Hong Kong for the first time Jan. 29. The stock has declined 2.9 percent from its debut. SouthGobi started production at its open-cast coal mine in southern Mongolia last year to meet Chinese demand.

China's sovereign wealth fund purchased $50 million of stock in the Hong Kong sale, SouthGobi said Jan. 14. China Investment Corp. also bought $500 million of 30-year senior convertible bonds issued by the coal producer last year.

China has been Mongolia's biggest trading partner throughout the past 10 years, according to materials distributed at the forum. China accounted for 73 percent of Mongolia's exports last year, up from 65 percent in 2008, the materials said. Canada came second with 7.8 percent, and the U.K. at 6.7 percent, according to the data.

--Editors: Nick Gentle, Tom Kohn

Source:Bloomberg news service
Share:

0 comments:

Post a Comment

Facebook page

Powered by Blogger.

Categories

Advertising in Mongolia An Culture Editorial of the Mongolianviews education Environmental protection Famous Mongolians Foreigners in Mongolia Inner Mongolia Ivanhoe Mines Mongolia agriculture Mongolia analysis Mongolia and Australia Mongolia and Belorussia Mongolia and Cambodia Mongolia and Canada Mongolia and central Asia Mongolia and China Mongolia and Cuba Mongolia and EU Mongolia and Germany Mongolia and Hongkong Mongolia and Hungary Mongolia and India Mongolia and Inner Mongolia Mongolia and Iran Mongolia and Italy Mongolia and Japan Mongolia and Kazakhstan Mongolia and Korea Mongolia and Kuwait Mongolia and Malaysia Mongolia and Nato Mongolia and North Korean Mongolia and Poland Mongolia and Russia Mongolia and Singapore Mongolia and South Korea Mongolia and Taiwan Mongolia and the world Mongolia and Tibet Mongolia and Turkey Mongolia and UK Mongolia and Ukraine Mongolia and UN Mongolia and USA Mongolia and Vietnam Mongolia Banking Mongolia civic society Mongolia crime Mongolia diplomacy Mongolia Economy Mongolia Education Mongolia Energy Mongolia Finance Mongolia Health Mongolia History Mongolia holiday Mongolia in international media Mongolia Industries Mongolia Joke Mongolia law Mongolia LGBT Mongolia medical Mongolia military Mongolia Mining Mongolia Mining Developments Mongolia Mortgage Mongolia natural disaster Mongolia Petroleum Mongolia public announcements Mongolia railways Mongolia Religion Mongolia society Mongolia Sports Mongolia Stamp Mongolia telecommunication Mongolia tourism Mongolia Urbanization Mongolia Wild Life Mongolian Agriculture Mongolian Archeology Mongolian Food Mongolian Gay Mongolian Government news Mongolian History Mongolian Military Mongolian Mining Development Mongolian Movie Mongolian News Mongolian Parliament Mongolian Political news Mongolian Press Mongolian Songs Mongolian Women Mongolian Youth Mongolians abroad Moninfo Opinion Oyu Tolgoi Investment Agreement Photo news Press Release Rio Tinto Tavan Tolgoi coal mine Ulaanbaatar development Weird expatriates in Mongolia

Blog Archive

Followers

Live Traffic