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Giant Looks To Issue Shares on China Exchange

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TAIPEI, Taiwan (May 23)- Giant says it is only a matter of time before the company raises funds by listing shares on a mainland China stock exchange. By doing so, the company will raise capital to further expand its production for the Chinese home market. According to reports in the Taiwan media, around four-tenths of […]

TAIPEI, Taiwan (May 23)- Giant says it is only a matter of time before the company raises funds by listing shares on a mainland China stock exchange. By doing so, the company will raise capital to further expand its production for the Chinese home market. According to reports in the Taiwan media, around four-tenths of Giant’s TWD 790 million (US$23.6 mn; Euro 27.5 mn) in profits last year came from its factory in Kunshan, China, an industrial center, located near Shanghai. Last year, the Kunshan facility produced 2.1 million bicycles, of which an all-time high of 1 million were sold in mainland China itself. Giant is currently listed only on the main board of the Taiwan Stock Exchange (TAIEX). On the strength of its China profits, the company performed well over the last twelve months, even though the TAIEX dropped around 40% as a whole and Taiwan’s other five bicycle stocks all dropped.
Giant spokesman Jeffrey Sheu pointed out that presently, Giant’s plan to seek Mainland equity market financing is still in the evaluation stage. “The government [in China] have encouraged us to go on the market,” he said, “but we are still looking at government policies relating to listings regulations and other requirements.” When asked about a timeframe, Sheu refused to comment, saying that no final decisions have been made. Back in 1998, Giant announced it was considering exchanges in Shanghai, Hong Kong and Singapore – all of which have an eye on China. Since 1992, Giant has invested at least US$ 30 million (Euro 33.2 mn) in China. Last week, Sheu said that Hong Kong and Singapore have been eliminated as options, leaving only Mainland equity markets as a possibility. If Giant lists in China, it will become the second ever Taiwan company to do so. At present, the Tsann Kuen Enterprise Co., an appliance maker, is the only Taiwan company traded on a Mainland exchange. It listed on the Shenzhen stock market since 1993.(DF)

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