It would also make a stake in the group's newly spun-off banking arm more attractive than a continued stake in the parent company, CSFB banking analyst Bill Stacey said. 'We have not changed our view, which is that for existing shareholders in Dah Sing Financial Holdings it would probably make sense to look closely at the new banking proposition,' he said.

Under a restructuring plan unveiled in March and approved at an extraordinary general meeting of Dah Sing Financial shareholders last Saturday, the group, which owns 100 per cent of its banking arm, is spinning off its banking assets into separately-listed Dah Sing Banking Group, with a minimum 20 per cent to be sold to the public.

Dah Sing Financial would retain the group's insurance assets.

Finance director Gary Wang said shareholders approved the restructuring, with one proxy vote opposed to the deal.

When it was unveiled, the restructuring plan triggered a steep fall in the share price of Dah Sing Financial, as shareholders quit what they feared would become a 'pyramid' likely to trade at a significant discount to its net asset value. The day following the March announcement from management, the company's shares plunged 16.3 per cent to an intra-day low of $55.25.

Yesterday, the shares closed at $49.70.

Analysts remain divided over the merits of the move.

UBS Warburg regional banking head John Wadle said the restructuring and separate listing was based on a bid by the mid-tier lender to gain scale in the local banking market and the mainland.

'Clearly, the plan is to gain scale through some type of M&A. But the timing is still a mystery. It is very difficult to see what ultimately they will do, or whether this materialises in the next year or whether in the longer term.'

However, based on management's consistent record of creating value, shareholders should have faith that this would continue, said Mr Wadle, and could elect to hold either the holding company or its listed banking arm. 'It is probably worth backing management's vision, which is to be bigger and to grow in China.'

Hugh Young, managing director of Singapore-based Aberdeen Asset Management - which holds about 5 per cent of Dah Sing Finance - said he had yet to decide on whether to maintain his stake in the holding company, or switch to the new banking arm, which is scheduled to begin trading on June 30.

'We have been holders of Dah Sing for years and believe the group runs a super bank. But generally we prefer simplicity. Such a dual-quote structure allows for a lesser degree of transparency,' he said.

Aberdeen voted its shares against the restructuring, Mr Young said.

'The restructure knocks it off our quality ratings and takes a bit of the gilt off the holding.'