MCLC: shrine's IPO sparks outcry

[Denton, Kirk]

MCLC LIST
From: kirk (denton.2 at osu.edu)
Subject: shrine's IPO sparks outcry
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Source: China Daily (7/3/12):
http://usa.chinadaily.com.cn/business/2012-07/03/content_15544624.htm

Shrine's IPO plan sparks public outcry
by He Wei

Shanghai, China -- The latest effort to float on the capital market by
Putuo Mountain, a Buddhist site, has renewed discussions over whether
religious venues should turn into high-profile commercial entities through
initial public offerings.

Putuo Mountain Tourism Development Co Ltd, a subsidiary company under the
Putuo Mountain Scenic Management Committee, is gearing up to go public on
the domestic capital market after prudent considerations and a year of
preparation, a committee official told China Daily on Monday.

"We are set to raise around 750 million yuan ($118 million) to bolster the
site's development," said Zhang Shaolei, who works for the committee,
which is affiliated to the Zhoushan municipal government in East China's
Zhejiang province.

The local authority is the driving force of the listing, Zhang added.But
he declined to reveal the timetable or comment on the revenue source or
composition of the planned listed company.

Putuo Mountain Tourism Development Co Ltd was unavailable for comment.

The listing of companies linked to world-famous Chinese heritage sites is
not new in the country's capital market.

For instance, Emei Shan Tourism Co Ltd, which is primarily engaged in the
sales of admission tickets and the operation of tramways and hotels in
Emei Mountain, another renowned Buddhist mountain, was listed in Shenzhen
in 1997.

A more recent example is Famen Temple, another high-profile temple in
Northwest China's Shaanxi province, which put the brakes on its IPO in May
after preparing for a Hong Kong listing, according to the China Securities
Journal.

The issues seemed to have touched the nerves of the government, which has
criticized plans to promote tourism via temples, or temples banding
together to go public for fundraising.

Xinhua News Agency quoted Liu Wei, an official with the State
Administration for Religious Affairs, as saying last month that such plans
violate the legitimate rights of religious circles, damage the image of
religion and hurt the feelings of the majority of religious people.

"Looking at the rest of the world, no venues for religious activities have
ever been packaged for listing before," he said.

Besides, the authorities are drafting documents to regulate policy
boundaries that differentiate philanthropic endeavors from profit-driven
activities, said Wang Zuo'an, head of the bureau.

Attempts to list religious sites have apparently crossed the line because
it is overly money-minded to misuse public assets for profit-driven
activities, said Liu Yuanchun, a researcher on Buddhist culture with
Shanghai Academy of Social Sciences.

According to Article 24 of the Law of the People's Republic of China on
the Protection of Cultural Relics, no State-owned sites protected for
their historical and cultural value, which are established as museums or
cultural relics preservation institutes or used as tourist sites, may be
made assets for business operations, Liu said.

"A Buddhist temple is a public asset that belongs to the whole country,
not the so-called temple managers or the local government," he said.

Reports about Shaolin Temple, famous for its kung fu monks in Henan
province, planning a listing sparked a public outcry when they surfaced
three years ago.

The temple has made huge profits in recent years from tourist visits,
international stage shows, film productions and online stores.

Most local governments have an inherent desire to make temples more
attractive and lucrative, as the tourism industry can help boost
employment and become a vital source of income, said Ling Xiao, an IPO
specialist at Zhong Yin Law Firm.

For example, Emei Shan Tourism Co received approximately 2.6 million
visitors to Emei Mountain last year. Net profits rose 31.6 percent
year-on-year to reach 145 million yuan, a majority of which came from
admission and cable car fees.

But it is highly "inappropriate" for the companies, which rely solely on
natural and religious resources, to seek funding on the stock market, as
it contradicts current laws on public listing and religious regulations.

"According to the Regulations on Religious Affairs, the land legally used
by a religious body or a site for religious activities is protected by
law. Therefore it is impossible for the listed company to claim
ownership," he said.