China's State Post Bureau to seek Hong Kong listing for assets in 6 provinces
China’s State Post Bureau plans to seek a Hong Kong listing for a planned joint stock company to be set up with assets in six provinces and municipalities, the China Economic Times said.
The newspaper said the bureau plans to list its assets in Beijing, Shanghai, the eastern provinces of Jiangsu, Zhejiang and Fujian, as well as the southern province of Guangdong.
It said as of the end of 2000, the bureau had 66,740 post offices nationwide and total fixed assets of 75.7 billion yuan (US$9.12 billion).
It quoted industry insiders as saying the bureau will encounter major problems as it implements reforms, including the reduction of redundant staff and the separation of the assets and services it plans to list.
The insiders added the bureau faces increasing competition from foreign companies due to China’s WTO entry.
China’s central government issued a notice in early September allowing overseas express mail delivery companies to deliver mail under 500 grams, but still prohibits them from delivering mail to individuals, Communist Party offices, government bodies or the military.
Non-state-owned express mail delivery companies had previously been prohibited from delivering articles weighing less than 500 grams, a policy which had been widely criticized as a monopolistic strategy to protect the State Postal Bureau and China’s Express Mail Service (EMS).
According to China’s WTO commitment, the country will open its wholesales business in the distribution sector to foreign companies.
