On October 30 at the Stock Exchange Limited of Hong Kong (SEHK) HSBC announced that it now holds 19.01 percent of the shares of the Bank of Communications (BOCOM). Previously HSBC held 18.6 percent of these shares. After spending 2.164 billion HK dollars this month, it managed to expand its presence in the BOCOM to 19.01 percent.
Vincent Cheng, the HSBC chairman, commented that HSBC has been expecting to hold more BOCOM shares and this was just their first substantial move.
Reportedly, before BOCOM returned to the A-share market HSBC was the second largest shareholder of the former and owned 19.9 percent. But after BOCOM landed on the A-share market, HSBC's presence in the former dropped to 18.6 percent. According to an agreement containing an anti-dilution provision reached between the two sides, HSBC can increase its presence in BOCOM to a maximum 19.9 percent.
For more details, please read the full story in Chinese. (http://www.cnstock.com/jryw/2007-10/31/content_2699258.htm)
(China.org.cn October 31, 2007)
