Bank of China may float shares in Hong Kong
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BOC was one of the lenders that needed capital infusions after the record 9.6 trillion yuan lending spree last year. Analysts expect more lenders to go in for fund raising after the BOC float.
Qiu said BOC's fund-raising plan would have major implications for others like Industrial and Commercial Bank of China (ICBC) and China Construction Bank (CCB), and they may also consider convertible bond issues as a measure to cushion market pressure.
Meanwhile the fact that investors are concerned over the continuous fundraising by banks was reflected by the benchmark Shanghai Composite Index yesterday after falling by nearly 1.1 percent to close at a one-month low of 3094.41.
Major lenders ICBC and CCB saw their A share prices fall 0.9 percent and 1.8 percent respectively. BOC's A shares were among the least affected bank stock, which fell 0.5 percent to 4.1 yuan yesterday, while its H share fell by a larger margin of 2.3 percent, to HK $3.8.
Other major losers included automaker SAIC Motor Corp, which fell nearly 1.5 percent to 21.31 yuan on reports that tighter credit would curb vehicle sales. PetroChina Co slid 1 percent, to 13.39 yuan, as crude fell.
The Shanghai Composite Index has fallen nearly 5.6 percent this year on concerns that the government intends to use policy tools to cool the economy.
