Xiamen International Bank, the first Sino-foreign bank widely considered a trailblazer in China's drive to reform its financial sector, is seeking mainland approval for a listing in Hong Kong.
If successful, it would be a significant breakthrough in China's financial reforms. Xiamen would be the first China-incorporated bank to be listed in the territory.
Although its seven shareholders have given their blessing to the listing plan, the bank has yet to convince various central government ministries of the advantages of a flotation.
The bank's management is believed to be lobbying China's bureaucracy.
A banking source said: 'Although the various ministries have given their approval in principle, there are lots of details to work out.' The joint-venture bank was formed in 1985 by four shareholders, including the Hong Kong-listed Min Xin Holdings (49 per cent), the Fujian branch of the Industrial and Commercial Bank of China (ICBC) (25 per cent), Fujian Investment and Enterprises Company (16 per cent) and Xiamen Special Economic Zone Construction and Development Company (10 per cent).
Min Xin, which was known as Panin Holdings at the time, contributed its capital by injecting cash as well as two entities into the bank - Macau-based Luso International Banking and a Hong Kong-based deposit-taking company, Panin International Finance Co.
In 1991, three more shareholders injected capital into the bank to top up its $420 million base and give a strong boost to its plans for expansion.
