CORRECTED - CORRECTED-Hi-tech listings overseas deprive China -official
(Corrects name in first paragraph to Wu Zhongze)
XIANGHE, China, Oct 28 (Reuters) - Chinese hi-tech firms drain the country of creativity and impede economic development by listing overseas, the country's vice minister of science, Wu Zhongze, said on Sunday.
Domestic stock markets should be reformed by creating a Nasdaq-style bourse for firms that specialise in science and technology to ensure they go public within China, he said.
"For individual firms, overseas listings certainly can help them to finance their business, but they are a loss of creative assets for China from a macro point of view," Wu told a financial forum in Xianghe, Hebei.
His comments marked a departure from the general support for overseas listings heard from Chinese officials. The Ministry of Science and Technology is not directly involved in developing securities policy.
Wu said most overseas-listed China companies were nurtured with the country's financial support, but that the fruits of their success have been reaped by foreigners.
Chinese internet stocks, including Baidu (BIDU.O) and Sohu (SOHU.O), have made a big splash with listings on Nasdaq.
"Neither the (Chinese) government nor the people can share in the growth of these innovative firms," said Wu.
"If all the innovative and hi-tech firms went abroad, then it would be impossible to build up an innovation-led economy, and the objective of good but rapid economic development would become empty talk," the vice minister said.
Chinese hi-tech firms have looked to float abroad partly because of the under-development of China's domestic stock markets, though an influx of capital and step-by-step reforms over the last two years have improved the situation.
Wu said a 2005 survey by China's science ministry and the Shenzhen Stock Exchange found that less than a third of qualified hi-tech firms were able to receive approval to list domestically.
He said China should expand its local venture capital industry and launch a NASDAQ-style bourse as quickly as possible.
