Bank posts fall in debut trading

Dong Wenbiao, board chairman of China Minsheng Banking Corp, reacts while answering questions from reporters in Hong Kong yesterday. Minsheng's shares tumbled 3.1 percent from its issue price of HK$9.08 (US$1.17) to HK$8.80 on its Hong Kong trading debut yesterday.

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CHINA Minsheng Banking Corp yesterday became the first Chinese lender to decline on its Hong Kong trading debut in four years on investor fears over the frequency of banks to raise capital.

Its shares tumbled 3.1 percent from its issue price of HK$9.08 (US$1.17) to HK$8.80 in Hong Kong yesterday.

The Beijing-based bank, which is the first privately held lender in China, raised HK$30.1 billion earlier this month in the biggest share sale in Hong Kong since April 2007.

Minsheng is the first Chinese bank to sell shares in Hong Kong in two and a half years as it tapped the rebound in investment sentiment following the global financial crisis.

The bank shelved a previous attempt to sell stock four years ago, citing poor market conditions as the main reason.

"The sentiment toward Chinese banks seems rather weak these days against the backdrop of capital raising plans by several banks," said She Minhua, a Haitong Securities Co analyst.

Minsheng Bank Chairman Dong Wenbiao said yesterday it has no plan to raise additional funds over the next three years.

All seven Hong Kong-listed Chinese banks fell yesterday while the Hang Seng Index lost 1.78 percent to 22,210.41.

The Bank of China, the third-biggest lender in China, said on Tuesday that it has plans to raise capital. Its announcement followed the recently disclosed plans to sell shares by the Industrial Bank and China Merchants Bank to boost capital.

In the first 10 months of this year, banks in China have lent 8.92 trillion yuan, up 5.26 trillion yuan from a year ago.

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