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Business/Finance See other Business/Finance Articles Title: Why are China's nuclear power firms going public? Want... After China General Nuclear Power went public in Hong Kong last year, China National Nuclear Corporation will list on the Shanghai stock exchange on June 2. The moves show that the two largest nuclear power enterprises in China have both made inroads into the capital market, according to the Economic Observer Network. Moreover, China Nuclear Engineering Group has disclosed that its core business of nuclear power engineering construction is also preparing to go public. In addition, once China Power Investment and State Nuclear Power Technology complete their integration and reorganization, the unified company is expected to begin offering stocks of its nuclear power business. Some people might wonder why all the national nuclear power companies, which were little known to the outside world in the past, have now begun entering the capital market? The first reason is that these enterprises need big money in order to expand. The Economic Observer said that with the development of nuclear power in the early 2000s, enterprises had to raise funds on their own instead of relying on state injections if they wanted to build nuclear power-generating facilities. Therefore, bank loans became the main way for enterprises secured funding. As a result, China National Nuclear Group and China General Nuclear Group each now shoulder a debt rate of 70%-80%. There are 26 nuclear reactors under construction in China. Their combined installed capacity will reach 28.5 million kilowatts, the world's highest in terms of facilities under construction. According to the State Council's mid- and long-term plan for national nuclear power development, installed capacity will be raised to 58 million kilowatts by 2020. This year, work will begin on six to eight more reactors with a further eight ready to start commercial operation. Such a scale of operations can no longer be borne if the source of funding is limited to bank loans, and this is the reason companies in the nuclear power industry have decided to step into the capital market. Furthermore, as the environment has changed, the state-owned nuclear power enterprises now must face pubic criticism over their operations, the Economic Observer said. These enterprises have to separate their nuclear power projects from secret operations involving military affairs. Promoting nuclear power station projects on public platforms will not just help improve the debt condition, but also accelerate company development and let the enterprises enter the global market. Post Comment Private Reply Ignore Thread
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