China Bohai Bank plans to raise US$2 billion in Hong Kong IPO
- Standard Chartered is the second-largest shareholder in the mid-sized Chinese lender with a 20 per cent stake
- Listing will probably take place in the second half of next year, two sources said
China Bohai Bank, a mid-sized lender part-owned by Standard Chartered, has picked lead banks for a planned Hong Kong initial public offering that could raise more than US$2 billion, according to people familiar with the matter.
The Tianjin-based lender is working with ABC International Holdings, CCB International (Holdings), CLSA and Haitong International Securities Group on the share sale, said the people, asking not to be identified because the matter is private. The bank will probably list in the second half of next year, two of the people said.
Bohai Bank joins a flurry of Chinese lenders seeking to raise capital at a record pace as they grapple with rising bad loans amid the slowest economic expansion since the early 1990s. Policymakers have called on banks to help revive the nation’s growth and boost loans to China’s cash-starved non-state sector, which would see them take on more risks.
Bohai Bank, with 1 trillion yuan (US$142 billion) of assets, saw its non-performing loan ratio rise to 1.84 per cent by the end of 2018 from 1.74 per cent a year ago, with revenue declining 8.1 per cent, according to its annual report.
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Standard Chartered held about 20 per cent in the firm as its second-largest shareholder, while local government-backed TEDA Investment Holding owned 25 per cent.
Meanwhile, Hong Kong-listed Chinese banks have lost an average of more than 10 per cent this year, with some smaller lenders losing over half of their value.
No final decisions have been made on Bohai Bank’s IPO, and details of the offering could change, the people said.
A representative for the lender did not immediately respond to a request for comment. Representatives for ABC International, CCB International, CLSA, Haitong declined to comment or were not immediately available.
