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The China Securities Regulatory Commission (CSRC) has approved an application by New York Stock Exchange LLC (NYSE), a subsidiary of NYSE Euronext (NYX), to open a representative office in Beijing, China. The new office will be occupied by the company’s staff in the coming weeks and will become the NYSE’s center of operations for advancing the company’s brand and service to its listed companies in China.
"The NYSE welcomes and appreciates the approval by the CSRC to open our Beijing office,” said John A. Thain, Chief Executive Officer, NYSE Euronext. “It is an honor for the NYSE to be the first foreign exchange to receive approval under the new regulations. This is an historic event for our company and the global capital marketplace, and reflects positively on the progress of the strategic economic dialogue between China and the United States. We look forward to further strengthening our relationship with the People’s Republic of China and to offering the opportunities of our marketplace to the people of China and its business community in order to contribute to the nation’s economic growth and well-being.”
Background: NYSE Euronext in China
The New York Stock Exchange (NYSE), a subsidiary of NYSE Euronext and the premier U.S. listing venue for non-U.S. companies, is privileged to have 40 companies listed from greater China, including 28 from mainland China and seven from Hong Kong. Currently in 2007, the NYSE has listed eight companies from China. Moreover, China is one of the largest sources of listed companies from the Asia-Pacific region for the NYSE, which lists a total of 89 companies from 11 countries.
- The total global market capitalization of the 28 NYSE-listed Chinese companies from the mainland is $790 billion, and above $1.0 trillion for the 40 companies from greater China (Market Cap - data as of June 2007).
- Average market capitalization of each mainland Chinese company is $30 billion, ranging from $0.4 billion to $232 billion.
- In Aug. 2007, the NYSE listed WuXi PharmaTech (Cayman) Inc. (NYSE: WX), a leading China-based pharmaceutical and biotechnology research and development, or R&D, outsourcing company, and E-House (China) Holdings Limited (NYSE: EJ), a leading real estate services company. Also in 2007, Tongjitang Chinese Medicines Company (TCM) listed on the NYSE, followed by Simcere, Acorn and QXM (LDK listed on 6/1/07 and Yingli Green Energy listed on 6/08.)
- In 2006, NYSE listed four Chinese companies: New Oriental Education and Technology Group, Inc. (EDU), Mindray Medical International Limited (MR), American Oriental Bioengineering, Inc. (AOB) and Trina Solar Limited (TSL). In 2005, the NYSE listed Suntech Power holdings Ltd. (STP). Listings in 2004 included China Netcom, Hutchison Telecommunications (HK), and Semiconductor Manufacturing International. In 2003, NYSE listings included China Life Insurance, and Nam Tai Electronics (Hong Kong).
- IPOs: The five largest global IPO’s by NYSE-listed Chinese companies have raised a total of approximately $16 Billion.
Company Name Global Capital Raised List Date
China Unicom Limited (CHU) $4.9 B (06/21/00)
China Petroleum & Chemical Corporation (SNP) $3.5 B (10/18/00)
China Life Insurance Company Limited (LFC) $3.0 B (12/17/03)
PetroChina Company Limited (PTR) $2.9 B (04/06/00)
Semiconductor Manufacturing International Corp (SMC) $1.8 B (3/17/04)
NYSE-China Partnership Highlights
Jiansu Province
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5/19/06: NYSE Group Chairman Marsh N. Carter met with Mr. Li Yuanchao, Party Secretary of the Jiangsu Province, Peoples Republic of China, paving the way for the signing of a cooperation agreement between the NYSE and Jiangsu Province.
- 8/8/2006: NYSE Group Inc. signed an agreement with Jiangsu Province’s Economic & Trade Commission to enhance cooperation between the two organizations.
Regulatory Commissions
- In 2006, NYSE Group President & Co-COO Catherine R. Kinney met with Mr. Jiang Dingzhi, First Vice Chairman of the China Banking Regulatory Commission (“CBRC”), and a separate meeting with Mr. Shang Fulin, Chairman of the China Securities Regulatory Commission (“CSRC”).
Heads of State
- 12/8/04: H.E. Wen Jiabao, Premier of the People’s Republic of China, visited the NYSE and rang the opening bell.
- 10/15/04: NYSE CEO John A. Thain met with Premier Wen in China.
- 04/29/02: President Hu Jintao, then Vice President, visited the NYSE and rang the Opening Bell.
- 10/ 31/97: President Jiang Zemin visited the Exchange and rang the Opening Bell.
Exchanges
- 10/15/03: NYSE signed a cooperation agreement (MOU) with the Shanghai Stock Exchange.
- 10/02: The NYSE supported both the Shanghai and Shenzhen Stock Exchanges in their quest to become members of the World Federation of Exchanges (WFE).
Beginnings
- 11/86: The NYSE pioneered the role of the U.S. capital markets when it organized the China-United States Symposium on Financial Markets in Beijing. That year, NYSE’s then-Chairman John Phelan visited China and met with China’s leader Deng Xiaoping.
