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Galaxy eyes IPO bid in second half
Last Updated(Beijing Time):2007-02-08 14:08

Galaxy Securities, one of the mainland's three largest brokerages, aims to apply to issue shares on a domestic exchange in the second half, a source said Wednesday.

Galaxy joins a growing list of domestic brokerages going public to fund expansion amid rapid growth of the country's capital markets.
"At the earliest, the application will be in the second half," the source said.

Galaxy received rescue funds of US$1.2 billion from the central government after a four-year stock market slump bankrupted most mainland brokerages.

Changjiang Securities, which recently severed ties with BNP Paribas, last month said it would achieve a domestic back-door listing through a merger with a loss-making petrochemical unit of China Petroleum & Chemical Corp.

Many brokers moved back into the black last year on surging stock trade commissions, but they still cannot apply for initial public offerings in the near future because listing applicants must have recorded profits for at least the previous three years.

The profitability requirements make back-door listing a faster alternative for many brokers.

The Shanghai stock market gained 130 per cent last year, making it the world's best performer.

After the restructuring, Central Huijin, the central bank's investment arm, and the Ministry of Finance are the main shareholders in Galaxy's parent company. [South China Morning Post] 
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