Shenzhen-based China Merchants Bank (CMB) expects to raise eight billion yuan (about HK$7.5 billion) to 10 billion yuan from an A-share issue on the Shenzhen stock market in the fourth quarter, but has put on hold a plan to spin off its Internet business on the Nasdaq. Yesterday, president Ma Huihua said the bank would complete its paperwork for the listing by the end of June. 'Depending on the market, the fourth quarter would be ideal. We have many procedures to complete, including the transfer to our mother company of shares held by a securities company that cannot be listed,' he said. CMB, China's sixth-largest bank with registered capital of 4.2 billion yuan and 106 shareholders, would be the fourth bank to list, after Shanghai Pudong Development, Guangdong Development and Minsheng. Following the spectacular rise of the Nasdaq last year, the bank's board approved a plan for a separate listing of its Internet business on the Nasdaq. Mr Ma said this plan had been put on hold after intensive discussions within the bank. 'We found that it would be very difficult to separate the businesses,' he said. 'I visited three Internet banks in the United States and discovered the most successful was the one that integrated best its traditional and Interest businesses. We invited 10 investment banks in Hong Kong to submit proposals for the listing but I was not happy with any of them.' This year the bank planned to open a branch in Hong Kong and an office in New York and, in the longer term, wanted to go international, which could involve a listing abroad. Mr Ma complained about the 8 per cent business tax China's banks must pay, in addition to income tax. 'Of course we welcome the government's decision to reduce this by one percentage point a year to 5 per cent. But it should be zero. Banks abroad do not have to pay this.' Set up in Shenzhen in April 1987, CMB was China's first bank whose share capital came entirely from companies. By the end of last year, it had total assets of 241.4 billion yuan. It has been a pioneer in developing mainland electronic banking, with more than 95 per cent of the country's e-commerce transactions going through its system. It said that, as of the end of last month, its system had handled transactions for more than 300,000 business-to-consumer customers worth 38 billion yuan and business-to-business transactions for more than 17,000 customers worth 700 billion yuan.