NewPostal Savings Bank’s HK shares rise on A-share offer plan
The bank, which operates China’s largest branch network, was reporting first-half net profit of US$4 billion, up 14.5pc on last year
Shares in the Postal Savings Bank of China rallied in Hong Kong on Wednesday after it unveiled plans to replenish its capital levels through an A-share offering.
Its stock ended the morning session up 3 per cent to close at HK$4.80.
The Beijing-based bank, which operates China’s largest bank branch network, was reporting first-half net profit of 26.6 billion yuan (US$4 billion), up 14.5 per cent year on year.
Officials said it plans to issue a maximum of 5.17 billion new shares onto the China’s yuan-backed A-share market, to finance further optimisation of its corporate governance structure and develop domestic and overseas online financial platforms.
In a statement, the bank said it was also necessary to consolidate its capital strength and set up a long-term capital replenishment mechanism through the offering, to preserve and strengthen its state-owned asset base.
Once the A-share listing is complete, all of China’s six biggest state-owned banks – added to Industrial and Commercial Bank of China, Bank of China, China Construction Bank, Agricultural Bank of China and Bank of Communications – will be dual-listed in Hong Kong and China.
