SPDB stock dips on fund raising moves

Share prices of Shanghai Pudong Development Bank declined yesterday after concerns that the share sale plan announced by the lender could drain money from the market.

The Shanghai-based lender, which is now 3.8 percent owned by Citigroup, said it plans to augment its capital base through diversified fund raising channels, including shares and hybrid bonds sales as well as overseas listing.

The lenders' shares fell by 4.8 percent on Friday after it announced the plan. Yesterday it said the regulator has approved its plan to sell 1.14 billion new shares through a private placement this year, sending its stocks down another 2.98 percent before closing at 19.85 yuan per share.