From Xinhuanet (link)
The listing on overseas stock markets of more than 300 of the largest and most lucrative state-owned companies, has sparked a hot debate in China’s business circles.
Ji Baocheng, president of Beijing-based Remin University of China, started the debate when he claimed that the “blind rush” to list the state-owned companies on foreign stock markets has caused a huge loss of state assets, marginalized the domestic capital markets and poses a threat to China’s economic security.
According to Ji, some 310 large and medium-sized state-owned companies had been listed on the Hong Kong, New York and other overseas stock exchanges by the end of 2005.He estimates 80 percent of them are high performing companies that hold monopolies in their sectors. Ji estimates that the IPOs undervalued these companies by at least 60 billion U.S. dollars, as most of these companies had stripped off their poorly performing assets before listing overseas.
