Two top China film firms initiate process to list in Shanghai
SHANGHAI Nov 27 (Reuters) - Two of China's most influential state-owned film companies, China Film Group and Shanghai Film Group, have submitted their applications to list on the Shanghai stock exchange, the country's securities regulator said.
The plan comes as Beijing encourages domestic media and film firms to list in order to better compete with new media companies and privately invested film companies like Huayi Brothers Media Corp and Bona Film Group.
China Film Group Corporation is the largest movie producer and distributor in China and the sole importer of foreign movies in the country. Shanghai Film Group is a unit under Shanghai Media and Entertainment Group, one of the largest and most authoritative media conglomerates in China.
Both companies have submitted their application to list on the Shanghai exchange, according to a document posted on the China Securities Regulatory Commission's website on Friday.
The applications are the initial stage of the listing process and the documents did not give a time frame for the listings or a target amount of the fundraising.
Officials at China Film Group could not be immediately reached for comment while Shanghai Film Group declined to comment.
China's IPO market has remained sluggish so far this year, weighed down by a weak stock market, but listings of media companies have gathered strong demand partly due to their scarcity.
Cable TV operator Jishi Media Co Ltd priced its 2 billion yuan IPO at the top of its price range while state-owned news portal People.cn Co Ltd raised 1.4 billion yuan, more than twice its initial target.
For a list on China's IPO in pipeline, click (Reporting by Melanie Lee; Editing by Muralikumar Anantharaman)