Some of China's major publishing and press firms are tapping into domestic equities markets for more sustainable growth, as the central government urges the enhancement of the cultural sector as one of the pillar industries for China's economy in the next five years.
The China Daily reports that for instance, Zhejiang Daily Press Group, with a daily circulation of more than 2 million, is planning a back-door listing via Shanghai WhiteCat Shareholding Co. Ltd., A Shanghai-listed toothpaste maker, which has been suspended from trading since late April after reporting losses for three consecutive years since 2007.
WhiteCat has dropped to "special treatment" status and will obtain assets of 2.46 billion yuan ($390 million) from Zhejiang Daily Press Holdings Group, a subsidiary of Zhejiang Daily, through the deal, WhiteCat disclosed in a statement to the Shanghai Stock Exchange on Wednesday.
The China Daily reports that, "the central government, for the first time, lists in its 12th Five-Year Plan (2011-2015) the cultural industry as a major sector contributing to the national economy. 'In past sets of guidelines, the cultural industry was rarely mentioned with such emphasis,' said Fan Min, an analyst at Everbright Securites."
Government authorities, including the China Securities Regulatory Commission and General Administration of Press and Publication, issued a public statement last April calling on financial segments to boost support for the cultural industry and encourages qualified cultural companies go public by selling shares in China's stock exchanges.
