Mid-sized China Everbright Bank Co. is looking at the “proper timing” for a long-planned Hong Kong listing, Tang Shuangning, the bank’s chair, said Monday.
“Since Hong Kong shares are rebounding, we are actively considering the Hong Kong offering,” he told reporters on the sidelines of the National People’s Congress, the top annual meetings of China’s legislature.
The benchmark Hang Seng Index has risen 16 percent since the start of this year, as concerns of an economic hard lending in China fade and US economic growth appears to be chugging along.
Tang said Everbright Bank has gotten initial approval from the Hong Kong stock exchange for the initial public offering.
Everbright Bank will price the new shares at “reasonable levels,” he added.
China Everbright Bank, the banking unit of conglomerate China Everbright Group, had planned to raise around $6 billion last year via an IPO in Hong Kong, but postponed a roadshow originally scheduled for June 27 because of weakening market sentiment, people close to the bank said.
A person familiar with the situation said in December that the bank may trim the size of its Hong Kong offering to around $2.5 billion to $3 billion by selling fewer shares.
Separately, Tang said: “In the short-term term there’s no chance that the global economy will turn for the better… China’s economy can’t avoid being affected.”
On Monday, Chinese Premier Wen Jiabao said China aims to deliver economic growth of 7.5 percent this year, after setting the target at 8 percent for eight straight years.
Category: Hong Kong