Premier encourages startup firms to list locally

    PREMIER Li Keqiang said the government would promote domestic listings of startup firms with “special ownership structure,” part of China’s efforts to encourage innovation and boost funding for productive sectors of the economy.

    At a conference held by the State Council, or Cabinet, on Thursday, Li also encouraged the development of the venture capital industry and urged local governments to give tax incentives to startup firms, incubators and angel investors who back innovation. Many Chinese companies, including technology startups and Internet giants, have adopted the so-called variable interest entity (VIE) structure. Because foreign ownership in China’s Internet sector is blocked, and Chinese Internet startups have difficulty meeting profitability requirements to list onshore, the VIE structure was developed to satisfy the ownership requirements of overseas security regulators without technically breaking Chinese law.

    Legend gets HK approval for up to US$2b IPO

    LEGEND Holdings Corp., parent of computer maker Lenovo Group Ltd., has won approval from Hong Kong’s stock exchange for an initial public offering (IPO) worth about US$2 billion, sources with direct knowledge of the plans said Friday.

    This would be the largest IPO in Hong Kong since property developer Dalian Wanda Commercial Properties Co. raised US$4.04 billion in December and comes amid a boom in capital markets activity.

    Hebei to auction US$258m bonds June 11

    HEBEI Province will auction 1.6 billion yuan (US$258 million) in special program municipal bonds ranging in tenor from three to seven years June 11, according to a notice on the website of a major bond clearing house Friday.

    The auction comprises three and five-year bond issues of 480 million yuan each and seven-year bond issues of 640 million yuan.

    Mindray executives propose taking firm private

    SHENZHEN-BASED Mindray Medical International Ltd. said Friday that three executives have proposed taking the company private for US$3.5 billion in cash.

    Li Xiting, president and co-chief executive, Xu Hang, chairman, and Cheng Minghe, co-CEO, have offered to acquire all of the shares outstanding they don’t already own for US$30 an American depository share in cash, a price tag that represents a 9.2 percent premium over Wednesday’s closing price.