Sina Tech, 10/18/11
Chinese online media and game operator Shanda Interactive (Nasdaq: SNDA) may list on the Shanghai Stock Exchange growth enterprise board by the end of next year, according to an industry source. Chairman and CEO Chen Tianqiao submitted a proposal to take the company private yesterday. According to the source, Chen has done so as part of a plan to move the company to a Chinese stock exchange.
Chen has held high expectations for Chinese stocks return to the mainland for some time, and submitted a resolution as a Chinese People's Political Consultative Committee (CPPCC) representative during the CPPCC meeting earlier this year calling for China's "red chip" stocks to move to domestic markets. In the resolution, Chen said that Shanda and other large, innovative companies chose to list on US exchanges because China's investment system was incomplete. Chen argued that since the company's market and users are in China while its investors are overseas, the full value of companies like Shanda is not reflected by the market.
Editor's Note: For more information on this topic, please see "Shanda Chairman Angles to Acquire All Outstanding Public Shares," MD 10/17/11 issue.