Shenzhen bank shares plummet

Shenzhen Development Bank, which admitted it had violated mainland securities rules, yesterday tumbled 8 per cent to close at 33.05 yuan (about HK$30.67), as investors bet the Shenzhen counter would revise its generous payout proposal.

China's only banking counter had proposed to pay five bonus shares and two yuan in cash for every 10 shares held.

Brokers said the revision was a result of the recent violation, which could involve the dismissal of its managing director and president, He Yun.

The bank indefinitely postponed its annual shareholders' meeting from Monday this week.