BEIJING, Feb. 8 (InfoChina) – Following recent media reports that Semiconductor Manufacturing International Corporation (SMIC, NYSE: SMI, HK: 0981) is possibly to be listed on the domestic A-share market, market analysts believe the chip supplier will be attractive to investors on the A-share market as long as its share price is reasonable comparing with about 1.09 HK dollars on the Hong Kong market.

Some analysts are optimistic about SMIC’s prospects on the A-share market as they hold that SMIC has competitiveness in the research and development field and in comparison with similar listed companies on the A-share market, the capital is quite abundant. Although SMIC incurred loss of 112 million US dollars in 2005 and would still be in the red for the whole year of 2006, it already made profit in the last quarter of 2006 and is believed to fare better and see a turnaround in 2007 as the government continues its supporting policy toward the semiconductor industry.

But the problem is it is still a question whether SMIC is qualified for listing on the domestic stock market as according to related rules, a company may make a public offering on the A-share market only if it has been profitable for the latest three consecutive years.