Lenovo mulls domestic stock listing

Lenovo said it may revive plans to launch a domestic stock listing to take advantage of the current Chinese stock market rally, Bloomberg reported. The Shanghai Composite Index is up 84% since the beginning of the year. The exact timing of the offering would depend on market regulators, said Liu Chuanzhi, the company’s chairman. He also said Lenovo has yet to hire an advisor. Lenovo’s shares have risen 160% in Hong Kong since March 6 when Liu announced the company would not be issuing shares to raise capital. Analysts said a China listing makes sense for Lenovo now as the stock has rallied from its low point and the company will need to raise capital if it is to fund acquisitions or expansions. Lenovo reported a US$16 million loss for the quarter ended June 30, compared to a profit of US$110.5 million the year before. HSBC and China Mobile have also recently expressed interest in listing on the mainland.