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Hang Seng Index

Nanjing Panda a lure for banker

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Christine Chan

Morgan Stanley Dean Witter owns 31.74 million Nanjing Panda Electronics H shares, according to Hong Kong Exchange and Clearing.

The holding gives the United States investment bank about 13 per cent of the company's H shares, or about 4.8 per cent of the company's total share capital.

The majority of Nanjing Panda's shares is held in the form of A shares, with H shares accounting for about 37.2 per cent of the total share capital.

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While A shares and B shares are traded on mainland stock exchanges, the former are traded in unconvertible yuan. In Shanghai the B shares trade in US dollars. In Shenzhen they trade in Hong Kong dollars. A shares are meant for domestic investors while B shares can be bought by foreign investors, who can also buy H shares - listed in Hong Kong and traded in Hong Kong dollars.

According to the exchange data, the stake is held by the bank's asset management arm - Morgan Stanley Dean Witter Investment Management.

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The share price at which it is snapping up the stock was not known but, based on Nanjing Panda's average closing of HK$2.7905 so far this year, the holding would have cost about HK$88.57 million.

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