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Fourth Bank Gets Nod for Domestic Listing
Huaxia, a small commercial bank, has been given permission by the China Securities Regulatory Commission (CSRC) to go public, a move marking the fourth bank in China to float on the domestic stock markets.
"We have won the approval from the CSRC and are doing preparation work right now, such as the auditing before listing and the drafting of application documents," a source from the office of the bank's board of directors said.
"The plan is to list 500 million A shares by the middle of next year," the source said.
The approval of the Huaxia Bank follows the successful initial public offering of 350 million A shares at 11.8 yuan per share by Minsheng, another commercial bank early this week.
The record 400 billion yuan frozen during the subscription shows investors' strong interests in bank stocks, which are currently a rare thing on domestic markets.
Among China's 1,000-odd listed companies, there are currently only six financial services companies, including two banks, namely the Shenzhen Development Bank and the Pudong Development Bank.
Listings on the stock markets can help financial companies expand their capital base and influence, and put them on a better position ahead of the opening up of China's financial services sectors, analysts said.
Financial firms usually enjoys stable returns and their floatation will optimize the structure of China's listed companies and create a group of blue chips, the analysts added.
According to media reports, a number of Chinese banks and insurers, including the Merchant Bank, the Communications Bank, the China Pacific Insurance Co. and the China Ping'an Insurance Co. are also preparing for domestic listings.
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