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Guangdong bank aims for IPO next year - source

(Agencies)
Updated: 2010-03-15 14:27

SHANGHAI - China's Guangdong Development Bank, controlled by Citigroup, is drafting plans for an initial public offering that will likely take place next year, a source familiar with the situation said on Monday.

The mid-sized lender has yet to determine the location and size of the offering, which could consist of mainland-listed A shares, Hong Kong-listed H shares or a combination of both, the source said.

Guangdong Development Bank had no comment on the matter.

Last year the bank posted a profit for a third consecutive year, clearing a hurdle for eligibility to list its shares on the mainland, and is eager to list as quickly as possible although plans are still at a preliminary stage, the source said.

China Life, the country's largest life insurer, owns 20 percent of the bank, which is based in the southern Chinese province of Guangdong.

Chinese banks are tapping the capital markets for funds to replenish their capital after last year's lending binge to support the government's economic stimulus, and as Chinese regulators tighten capital rules to shore up banks' balance sheets.