• Wed
  • Sep 24, 2014
  • Updated: 3:19am

Everbright Bank seeks Shanghai listing first

PUBLISHED : Thursday, 14 May, 2009, 12:00am
UPDATED : Thursday, 14 May, 2009, 12:00am

China Everbright Bank reiterated yesterday its plan to list in Shanghai first, rather than in Hong Kong, dismissing recent media reports the company had changed its mind.

'The bank only submitted an A-share listing application, and there are no changes to the listing plan,' said Chen Shuang, the chief executive of red chip China Everbright, which owns 6.23 per cent of the Beijing-based bank, after the company's annual general meeting yesterday.

Mr Chen said the bank was awaiting approval from regulators for its listing. Whether the bank would also seek an H-share listing in Hong Kong would depend on market conditions.

Media reports had said Everbright Bank had changed its plans in favour of an H-share listing before issuing A shares and had already submitted an A1 form to Hong Kong Exchanges and Clearing. The reports said the bank planned to raise between US$2 billion and US$3 billion combined from the share sales.

Meanwhile, Mr Chen said his company, the Hong Kong financial arm of conglomerate China Everbright Group, expects to benefit from the new supplement to the closer economic partnership arrangement (Cepa), which could help the company expand its brokerage and fund management business.

Under the sixth Cepa supplement between Hong Kong and the mainland, the city's brokerages will be allowed to offer investment advisory services in Guangdong.

Mr Chen said the company's Hong Kong brokerage arm planned to set up an advisory company with Shanghai-based China Everbright Securities to provide related services.

Citigroup said in a report Cepa 6 would broaden China Everbright's role as a leading asset management brand in China, specialising in Hong Kong alternative investments. It would also help the company position itself as a leading provider of products for qualified foreign institutional investors.

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