China Minsheng Banking Corp has jump-started its mega-refinancing deal that is expected to raise up to HK$11.3 billion to cover potential bad loans and satisfy the regulator's tightened capital requirements.
The share placement added to evidence that mainland lenders are hungry for capital infusions amid rising risks of a bad debt crisis.
Trading of China Minsheng's shares in Hong Kong and Shanghai were suspended yesterday as the Beijing-based lender said in a statement that it was making arrangements for the H-share refinancing.
The bank plans to float 1.65 billion H shares at HK$6.65 to HK$6.86 each, which represents a four to seven per cent discount to its closing price of HK$7.15 on Friday.
The fund-raising came just less than two weeks after its bigger rival Bank of Communications announced it would place 12.4 billion shares on the Hong Kong and Shanghai stock exchanges, targeting combined proceeds of 56.6 billion yuan.
China Minsheng also attempted to net 20 billion yuan in Shanghai through a convertible bond issuance.