Huge IPO reflects China's market
An investor knits at a securities exchange in Beijing. The Shanghai Composite Index has shot up more than 34% this year, after losing 65.5% of its value in 2008.
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Steve Chiotakis: China's where this year's biggest IPO is underway today. They're still tallying the numbers, but a state-owned Chinese construction company is on its way to raising some $7 billion. That's the world's biggest public offering since credit card company Visa raised $18 billion last year. From Shanghai, Marketplace's Scott Tong reports.
Scott Tong: "China State Construction Engineering Corporation" doesn't exactly roll off the tongue. But this company built China's tallest skyscraper, and that futuristic swimming center at the Beijing Olympics -- the Watercube.
Zhou Liang is with Thomsen Reuters advisory. He thinks the mega-IPO reflects China's bounce-back from the recession:
Zhou Liang: The confidence of the investors increased the last few months with the recovery of the China economy.
Chinese investors are dying for new stocks to buy. Last fall, when markets tanked, regulators said no new offerings. But this year, the market's up 75 percent. So the authorities decided game on.
Liang: It is a suitable time to resume IPOs and make the market increase smoothly.
China state construction is the country's biggest homebuilder. So it's also enjoying the fruits of loose credit under China's $600 billion stimulus.
In Shanghai, I'm Scott Tong for Marketplace.