Top Biz News

CMB sets target for Hong Kong offering

By Lillian Liu and Zhang Jin (China Daily)
Updated: 2006-09-08 09:14

HONG KONG: China Merchants Bank (CMB), the mainland's sixth-largest lender, is expected to raise as much as US$2.4 billion through an initial public offering (IPO) in Hong Kong, the fourth mainland bank to get an H-share listing.

China Merchants Bank Chairman Qin Xiao speaks during a teleconference in Hong Kong September 7, 2006. [Reuters]

"CMB is operating in a fully market-oriented way since its establishment," said the bank's chairman Qin Xiao yesterday, adding it would maintain its leadership in the retail banking and credit card business despite fierce competition.

Qin made the comments at a video press conference yesterday to announce the details of the IPO and promote its shares to local investors.

The bank has issued 6.5 million credit cards, accounting for about 30 per cent of the mainland's credit card business.

Considered by some fund managers and analysts as the mainland's best-managed bank, the lender plans to maintain its loan and asset growth at less than 20 per cent to better contain the risk, Qin said.

CMB operates 467 branches in more than 30 mainland cities, and plans to sell 2.2 billion H shares at a proposed range of between HK$7.3 (93.6 US cents) and HK$8.55 (US$1.1) apiece.