China Everbright Bank is likely to seek a domestic stock market listing later this year, according to CLSA Global Emerging Markets.
As part of the listing plan, China Everbright Bank is also seeking central government permission to have the Ministry of Finance provide 'a significant amount of cash' to write off as much as eight billion yuan (about HK$7.46 billion) worth of non-performing loans it inherited from China Investment Bank, CLSA said yesterday in a research report.
China Everbright Bank took over China Investment Bank from the China Development Bank in March as part of its efforts to expand its network of branches.
The acquisition has seen China Everbright Bank, which is 20 per cent controlled by the Hong Kong-listed China Everbright, become the mainland's sixth-largest commercial bank.
Officials from China Everbright were not available for comment on the CLSA report but mainland sources confirmed the bank was actively pursuing the two options.
CLSA said the takeover of the debts, if approved, would remove the largest over-hang for the bank and help boost earnings growth for China Everbright Limited, the listed flagship of the mainland conglomerate China Everbright Holdings.
