THE WEBSITE of the People’s Daily, the propaganda arm of the Chinese communist party, has received an overwhelming vote of approval from the market in its initial public offering (IPO).
In the first listing of the editorial arm of a government news organisation in China, the online unit of People’s Daily raised 1.38 billion renminbi in Shanghai, nearly triple its fundraising target.
Beijing hopes that it will lead the way to similar IPOs, with the internet portal of Xinhua news agency up next, raising cash to boost the appeal of state-run media. Bids covered more than 60 times the amount of shares on offer, as investors scrambled for a slice.
The strong performance reflected optimism that the People’s Daily will be able to modernise and close the gap with private internet firms such as Sina and Tencent, which have built much more popular news websites than their stodgy government-run rivals. In global terms, the People’s Daily appears strong, ranking just behind the New York Times in terms of valuation, at $876 million based on the float, compared to $943 million.– Copyright The Financial Times Limited 2012
