The CSRC is reviewing Air China’s application to list on the Shanghai exchange and it seems obvious that they will be approved. Analysts are guessing that the IPO would raise about US$1 billion, which will be used to buy a whole bunch of new airplanes: 20 Airbuses and 25 Boeings, not to mention an expansion of their section of the Beijing airport.
It’s a hefty sum when you consider that Air China raised the same amount in its original double-IPO, which debuted almost 2 years ago in Hong Kong and London. All this is very encouraging for those of us interested in seeing China’s markets show the same level of success that its economy has shown for the last decade. Bank of China’s IPO was a major milestone for the mainland markets, and Air China will be another. Years from now, this period could prove to have been the beginning of the end for the giant state-owned monoliths of China and the rise of its stock markets.
NB: This is not an endorsement of China’s stock markets or a solicitation to invest in them. Above comments are made for informational purposes only and should not be construed as advice, let alone considered important, by anyone.