The Xinhua bookstore chain, China’s largest official publishing enterprise, has become a surprising flash point for interest among foreign venture capital investors.
"We are actively promoting the process of shareholding reform. Every day, we receive lots of offers from domestic and foreign investors interested in getting involved and may pick one or two to do so in the next two to three months," Zhang Yashan, the leading cadre of the head store’s office said.
According to a company insider who requested anonymity, several securities firms are overseeing Xinhua bookstore’s reform and the company could list on the domestic stock market once reforms are reported to the government in May and then completed.
The source would not reveal the specific names of the firms involved or details of the reform.
"We will stipulate that we must remain the majority shareholder, but we will welcome all kinds of investment, including foreign capital, to establish a shareholding enterprise. We hope the No. 2 shareholder will be a foreign enterprise," the source said.
In keeping with its World Trade Organization entry promises, China must allow foreign investment in domestic publication retailers by the end of this year.
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