Bank of China, the mainland's second-largest bank, is aiming to trade its shares on the Shanghai stock exchange by July 5 after raising a record 20 billion yuan from a domestic initial public offering.
The country's leading foreign-exchange lender yesterday began marketing the A shares at an indicative price range of three yuan to 3.10 yuan each.
The range, valuing the bank at up to 2.76 times book value at the end of last year, fuelled the share prices of other listed lenders.
With the exception of Shenzhen Development Bank, four other mainland-listed lenders - China Merchants Bank, China Minsheng Banking Corp, Shanghai Pudong Development Bank and Huaxia Bank - saw their stock prices rise yesterday.
The banking stocks closed at 1.63 to 3.03 times book value.
'We are expecting a 20 per cent upside for Bank of China's A shares,' a Beijing-based fund manager said.
'That will help raise the other domestic banking stocks' valuations.'