SHENYANG, Dec. 21 (Xinhua) -- A Chinese publishing group listed on the
Shanghai stock market on Friday morning, becoming the country's first media
company to issue shares in all its operations, including editorial units.
Liaoning Publishing and Media Company Limited (LPMC) aimed to raise more
than 600 million yuan (81.6 million U.S. dollars) by selling 140 million A
shares. This accounted for 25.41 percent of its enlarged capitalization,
Chairman Ren Huiying said.
The company's shares opened at 16.63 yuan, 258 percent higher than its
initial public offering price of 4.64 yuan, and ended at 19.93 yuan on Friday.
The listing "is an important achievement in the cultural systematic reform.
It marks new success while deepening reform in the publishing and distribution
industry", said Ouyang Jian, deputy director of the Publicity Department of the
Central Committee of the Communist Party of China (CPC), in a congratulatory
letter.
Ouyang hoped that the LPMC would provide further references and gain
experience for the reform of China's publishing and distribution system.
The department, General Administration of Press and Publication and the
Liaoning provincial government have all approved the commercialization of the
LPMC.
Observers said the listing displayed China was deepening the
commercialization of its publishing and media industry and the sector could be
bright in next year's stock market.
Other media publishing companies, such as Chengdu B-Ray Media and Beijing
Media, had listed before LPMC but excluded their editorial units, according to
Song Jianwu, director of the Institute of Communication and Media Management
Research of China Renmin University.
The LPMC listing as a whole package was a landmark and breakthrough for the
entire industry and signaled a major policy change in the country, Song said.
"People are expecting further steps in the commercialization process."
"Its listing is more than just stock market news," added Lin Muxi, a
professor with the Liaoning University School of Economics. "It is very
important politically."
The LPMC, based in Shenyang, capital of the northeastern Liaoning Province,
is engaged in publishing, distribution, printing and printing materials. It had
1.13 billion yuan in net assets and 90.5 million yuan in net profit by the end
of last year.
It currently includes five publishing houses, five book distribution
subsidiaries, one bill and ticket printing company and one printing materials
company.
It planned to merge another four publishing houses in Liaoning Province
when conditions were ripe, Ren said.
It was co-founded by Liaoning Publishing Group and the Advertising and
Communication Center of Liaoning TV on August 29, 2006.
Ren said the LPMC had been given the privilege by the China Securities
Regulatory Commission to get a fast-track listing. The current regulations
stipulated that a company must exist for at least three years before being
listed.
State-owned Liaoning Publishing Group holds 402.9 million shares, or a
controlling 73.14 percent, of the LPMC, while the Advertising and Communication
Center of Liaoning TV has 1.45 percent after Friday's listing.
Signs of the commercialization of media and publishing houses were noticed
in October, when Liu Binjie, the director of the General Administration of Press
and Publication, said that "the government encourages cultural companies to list
on the stock market when conditions are ripe."
Vice Minister of the State Council Information Office of China, Cai
Mingzhao, said at a forum early this month that Chinese news web sites listed in
a pilot reform program could seek funding through various channels, establish a
modern corporate system and form joint-stock companies.
"They may be listed on domestic stock exchanges when conditions allow," Cai
said, referring to the websites of Xinhua.org, www.people.com.cn and
eastday.com, in the program launched in 2003.
These remarks by the two officials have been interpreted by market
observers as key signals about the opening-up of the capital market for the news
and publishing industry.
