Exchange blocks Dalian Port's Jinzhou bid
5 September 2006
Dalian Port, the operator of China's eighth-largest port, abandoned an attempt to buy a stake in Shanghai-listed Jinzhou Port on the open market after the Shanghai Stock Exchange rejected its request to buy A- and B-shares due to the lack of regulations governing the purchase of US dollar-denominated B-shares, the South China Morning Post reported. Since China began implementing its share reform plan under which state-owned non-tradable shares are converted into ordinary equity, the country's securities regulator has allowed companies to make offers to shareholders in the open market. Although several firms have successfully bought A-share stakes under the rules, no successful attempt has been made in the B-share market. A stake in the northeastern China port operator would have increased Dalian Port's market share in the Bohai Sea.
