SHANGHAI, April 26 (Reuters) - China is targeting the world's top 500 companies as it prepares the launch of an international board in Shanghai, official media reported on Tuesday
After considering the views of many parties, the regulator has come to the conclusion that the international board should first consider companies on the world's top 500 list, the China Securities Journal reported on Tuesday, citing a source it described as authoritative.
Local media reported earlier this month that China's securities regulator may allow about 10 foreign companies in the first batch of listings on the international board.
The 10 will comprise multinational corporations such as HSBC and Unilever , as well as foreign-incorporated Chinese firms, known in China as red-chips, such as China Mobile and CNOOC , the 21st Century Business Herald reported, citing a government proposal on the board. [ID:nL3E7FM03X]
Foreign companies looking to list in Shanghai must have a market capitalisation of at least 30 billion yuan ($4.6 billion) and a combined three-year net profit of at least 3 billion yuan, according to the proposal.
The companies must have posted a net profit of at least 1 billion yuan in the most recent 12 months, the proposal said.
China has long said it plans to open its stock market to foreign listings because it wants to raise the global profile of Shanghai, which aims to become an international financial centre. The government also hopes the board will broaden investment channels for its swelling yuan savings.
There had been constant speculation about an immediate launch of the international board since 2009.
Fang Xinghai, Director-General of the Shanghai Financial Services Office, said late last year the city government was hoping to launch the board in 2011. [ID:nTOE6B004D]
Industry players said the delay could be due to the lack of agreement so far on the listing criteria for the board.
Some government departments believe that the board should focus on the red-chips at the initial stage while others wanted the board to focus on the world's top multinationals.
Rules for the international board are largely ready although no timetable for its launch has been set, Geng Liang, chairman of the Shanghai Stock Exchange, said. [ID:nTOE72806F] ($1 = 6.528 yuan) (Reporting by Soo Ai Peng; Editing by Jacqueline Wong)