Ten government-controlled websites, including those run by People’s Daily, Xinhua and China Central Television, have been approved to seek listings on the A-share market, the South China Morning Post reported, citing state media. The decision allows the websites to raise capital and compete against China’s most popular internet portals – Sina (SINA.NASDAQ), Sohu (SOHU.NASDAQ) and Netease (NTES.NASDAQ) – which are all foreign-funded and trade on NASDAQ. Each of the state-controlled websites could raise at least US$585 million in their share offerings, analysts said. The move is seen as an effort to strengthen the Chinese state media’s financial muscle and influence, as Beijing faces increasing challenges in censoring the internet. "An IPO doesn’t necessarily mean that the central government would loosen control on the state-controlled news websites," said CITIC Securities analyst Zhang Bin. "The IPO proceeds would be used to fund their business expansion."
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