nuclear-news

China raising funds to launch nuclear power, but public sentiment is “fragile”

China to Stoke Nuclear Power, WSJ 6 June 12, State-Owned Firm Plans IPO to Fund Reactors; $5.4 Billion Deal Is Possible  BEIJING—China National Nuclear Power Co. said it is planning a Shanghai initial public offering that will go toward financing part
of five power projects worth 173.5 billion yuan ($27.2 billion), in a multibillion-dollar deal that signals that the country’s ramp-up of nuclear power is moving forward..

… China National Nuclear Power, according to a statement on the environmental ministry website, will sell shares to raise funds for nuclear-power projects in Fujian, Zhejiang, Hainan and Jiangsu provinces, the statement said, adding that these projects were approved by China’s National Development and Reform Commission between 2008 and 2010. Those projects require 173.5 billion yuan in funding,…
the IPO could be asking a lot of the country’s equity markets. The commission hasn’t approved any sizable IPOs since May, when the regulator gave the green light to China Postal Express & Logistics Co.’s potentially 9.98 billion yuan deal, though that has yet to
launch. Since early May, the benchmark Shanghai Composite Index is down 4%.

“A big IPO would weigh on the stock market further as it would divert funds from the secondary market, especially when the sentiment remains fragile,” said Yang Delong, a fund manager at China Southern Fund….. http://online.wsj.com/article/SB10001424052702303665904577449784005256706.html?mod=googlenews_wsj

June 7, 2012 - Posted by Christina Macpherson | business and costs, China