Beijing Jingkelong Says CSRC Rejects Shanghai Share Sale
Beijing Jingkelong Co., a Hong Kong- listed supermarket operator, said its plan to sell shares in Shanghai was rejected by the China Securities Regulatory Commission.
The Public Offering Review Committee of CSRC did not approve its application after a review, Beijing Jingkelong said in a statement to the Hong Kong stock exchange today, without giving other details.
“There will not be any material adverse effect on the financial position or the operation of the company,” it said.
Beijing Jingkelong sought to raise funds selling yuan- denominated A-shares as the Shanghai Composite Index slid 13 percent this year on concern that slowing global growth will cut demand for exports and amid reports small and medium-sized domestic companies are facing a credit squeeze.
China’s securities regulator may slow approvals for share sales, 21st Century Business Herald reported on Sept. 22. The CSRC aimed to support Sinohydro Group Ltd.’s initial public offering, the paper said. The company raised 13.5 billion yuan ($2.1 billion) Sept. 29 and trading in the shares may begin around Oct. 18, the paper said yesterday.
Calls to CSRC and Beijing Jingkelong were unanswered.
The retailer, which operates about 246 stores around the capital, said on Oct. 10 it planned to use proceeds from the share sale to expand its shopping center and hypermaket network in China.
“The company will use its internal resources or other means to finance the projects,” according to today’s statement.
The stock rose 3.9 percent to close at HK$7.69 today.
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