Bank of Communications to delay IPO
(Agencies)
Updated: 2005-05-09 09:31

Bank of Communications, China's fifth-largest lender, has dropped plans to become the first Chinese company to list shares simultaneously in China's mainland and Hong Kong, and will initially go ahead with only the Hong Kong offering, the Wall Street Journal reported.

The paper, citing people involved in the process, said bank management made the decision because of poor market conditions in China.

As a result, the bank may raise the size of its Hong Kong offering to US$2 billion from US$1.5 billion. The original plan called for a US$1 billion to 1.5 billion Shanghai listing.

"It'll get done, but not at the same time," a person familiar with the situation was quoted as saying.

The paper said banking analysts generally welcomed the decision by Bank of Communications to delay the Shanghai listing, saying that with Chinese banks queuing up to launch initial public offerings this year it is important that the first one goes off well.

The analysts said it was likely that Chinese regulators were worried that a big domestic listing at this time could further collapse prices and make the trial sale of state shares even more difficult.

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