Chong Hing Bank surges to 6-year high on takeover hopes
Chong Hing Bank Limited shares surged the most in almost six years after the appointment of a chief executive officer from outside the controlling shareholders’ family fuelled speculation of a takeover.
Chong Hing advanced 16 per cent to HK$17.60 at the 12pm trading break in Hong Kong, the biggest jump since January 2007, extending yesterday’s gain of 11 per cent.
CEO Liu Lit-chi will step down after more than 50 years at the bank when his deputy, Lau Wai-man, gets approval from regulators to take over, the lender said on November 28. Family- owned banks in Hong Kong have drawn interest from buyers, with China Merchants Bank paying US$4.7 billion in 2009 for the Wu family’s Wing Lung Bank.