BIZCHINA / Center |
Minsheng to sell shares(Shanghai Daily)Updated: 2007-01-17 10:23 China Minsheng Banking Corp has received regulatory approval to issue up to 3.5 billion yuan-denominated shares to raise its flagging capital base. The lender won authorization from the China Securities Regulatory Commission to place shares with qualified institutional investors, the Beijing-based lender said in a statement to the Shanghai Stock Exchange yesterday. The size of the investment, which would come before an expected listing in Hong Kong this year, was not revealed. Analysts estimated the shares would be sold for around eight yuan (US$1.03) each, which would raise some 28 billion yuan. Minsheng's capital adequacy ratio fell to 7.46 percent at the end of June because of rapid loan growth, lagging the regulatory minimum requirement of eight percent. The lack of capital will curb the bank's lending growth and interest income expansion. The Shanghai-listed bank also has won approval from shareholders to set up a securities fund management joint venture with the Royal Bank of Canada and China Three Gorges Project Corp, the lender said in a separate statement. Minsheng Bank will own 60 percent of the venture, Royal Bank will control 30 percent, and Three Gorges Project Corp will hold the remaining 10 percent stake in the enterprise, MinSheng Royal Fund Management Co. (For more biz stories, please visit Industry Updates) |
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