China Merchants Bank, now listed on the Shanghai Stock Exchange (SH 600036), has announced to set its H-share issuance price between HK$7.3 and 8.55.

 

The Bank's international road show will kick-start in Hong Kong today, in preparation for its initial public offering (IPO) on the Hong Kong market.

 

According to this issuance price, the bank should raise US$2.41 billion on the Hong Kong market.

 

The bank estimated in a latest report that the net profit in 2006 will exceed 5.5 billion yuan (US$690 million). The share price of heavy-weight China Merchants Bank Co. Ltd. on the Shanghai market has hit a new high in the past month due to investors' expectations of a high H-share issuance price.

 

Last month, China's Banking Regulatory Commission approved China Merchants Bank goal of purchasing overseas financial investment products on behalf of the Chinese customers.

 

(Xinhua News Agency September 4, 2006)