Government push for news media company IPOs

The China Daily reports:

Ten Chinese websites are to be listed in the domestic A-share stock market, according to media reports, with Shanghai-based eastday.com hoping to become the first to launch initial public offerings (IPO), analysts said.

They include websites of China’s State broadcaster China Central Television, Xinhua News Agency, People’s Daily, Beijing-based qianlong.com, Tianjin-based enorth.com.cn, Shandong-based dzwww.com, Shanghai-based eastday.com and other local online news websites, Shanghai Securities News reported on Sunday, citing an anonymous source.

“The Publicity Department of the Communist Party of China Central Committee and the China Securities Regulatory Commission (CSRC) are actively pushing the listing of these websites and, at least, one or two websites will make it this year,” the source was quoted as saying.

BusinessWeek covers the market fallout from the news:

China’s media stocks plunged, dragging down the Shanghai Composite Index, after Shanghai Securities News reported 10 news portals may be allowed to be listed publicly to help the new media industry grow.

Beijing Gehua CATV Network Co., Shanghai Xinhua Media Co, Shaanxi Broadcast & TV Network Intermediary Co., and China Television Media Ltd. all fell by the maximum 10 percent limit.

It’s noteworthy that the the Publicity Department (née Propaganda Department) is behind the push. They have realized that Chinese soft power interests, aka propaganda, are best served by market oriented companies that have to fight for readers and viewers.

Furthermore, by putting these companies on China’s stock markets, China’s stock-buying public will fund the information organs that the government used to subsidize.

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