The Financial Times reports on China's record breaking $61bn (€42bn, £29bn) IPOs for this year placing Shanghai in a position of preeminence in relation to New York, London and Hong Kong in the community of international business players.
When the state oil and natural gas company PetroChina makes its debut Monday on
the Shanghai Stock Exchange, China's booming stock markets will be on the verge
of another milestone. Soon after the Shanghai listing, analysts expect
PetroChina to surpass the U.S. energy behemoth Exxon Mobil as the world's
largest company by market value.
PetroChina shares, already traded in New York and Hong Kong, are expected to be seized on by a market awash with cash and investors eager for new opportunities. At the close of markets Friday, PetroChina was valued at $460 billion, making it the world's second-most-valuable company, worth about $26 billion less than Exxon Mobil.
China has the biggest bank, insurance company, telecommunications carrier and
airline by market value.
In a report on the Chinese economy earlier this year, the World Bank said
that China's banks appeared to have limited exposure to the stock market,
although the report acknowledged there was insufficient data to make an accurate
assessment.
On the emerging power of Chinese banking:
The Industrial and Commercial Bank of China has become the biggest bank in the world by market capitalization, [...]
Gordon Kwan, an analyst at CLSA Asia Pacific Markets, said the Chinese
government had the tools to exercise considerable influence over the performance
of the share markets. Kwan, who analyzes oil stocks, cited a decision by the
government last week to increase prices at the pump, just ahead of PetroChina's
Shanghai listing.
"It might be why the government timed the price hike, so
PetroChina could squeeze past Exxon Mobil," he said. "I think China wants to win
all the gold medals. Face is very important for China."
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