China Minsheng Banking Corp is applying to set up a financial
leasing company with the State Grid Corp of China and the Tianjin
government, the bank's president said yesterday.
"We will control 51 percent of the firm, with the remaining 34
percent and 15 percent going to power grid and the Tianjin
government respectively," Dong Wenbiao told reporters during a
break in the annual session of the National Committee of the
CPPCC.
The planned firm will be the first financial leasing company to
be licensed in China since 2000 if it finally receives the green
light from the regulator.
Market sources had earlier said Minsheng would make its debut in
the Hong Kong bourse in the third quarter, raising HK$10 billion to
HK$11.7 billion.
Dong added that the Hong Kong listing was aimed not primarily
for money but for a platform to enter the international market.
"And we will not rule out the possibility of overseas merger and
acquisitions with the money raised from the Hong Kong listing."
The bank had submitted the listing plan to the Hong Kong bourse
in May 2005 and passed the hearing in June. But due to the poor
stock market situation at the time and the disputes on its pricing,
the plan was shelved.
Liu Yonghao, chairman of Minsheng's largest shareholder, New
Hope Group, urged the bank to float shares at the Hong Kong bourse
as soon as possible after it raised over 18 billion yuan through a
private placement.
"We took part in the placement and will increase our stake in
the bank from the current 5.98 percent to 10 percent or even more,"
Liu said.
Minsheng bank sold 2 billion new shares at 9.08 yuan each, and
the New Hope Group hoped to take over 400 million shares, Liu said,
adding that his determination to increase the stake in Minsheng
showed his optimism in the bank's prospect and China's financial
sector.
The country's two top insurers, China Life and Ping An Insurance
(Group) Co, were among the seven buyers, sources said. Temasek
Holdings, a $65 billion Singapore government fund that owns 3.9
percent of Minsheng, failed to get any shares because of
restrictions on foreign investment in private placements.
(China Daily March 6, 2007)