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He confirmed that a Shenzhen-based securities broker would take charge of the deal but declined to reveal more about the owner of the shares. Actually, it is not the first time for shares of the bank to be sold this year. Available statistics show that its foreign shareholders including UBS, JPMorgan Chase & Co., Barclays Bank and Mirae Asset Financial Group cut holding in it in recent three months.
The stake UBS and its subsidiaries hold in the bank reached 6.33 percent as at September 11, compared to 7.47 percent as at the end of June 2009. The figure controlled by JPMorgan Chase hit 13.14 percent as at August 18, compared to 15.7 percent as at June 30. That owned by Barclays Bank stood at 7.06 percent as at September 16, compared to 10.23 percent as at June 30. Mirae Asset sold 3.755 million H shares of the bank on August 31 and after the deal, its stake in the bank will be diluted to 4.89 percent from previously 5 percent.
It is common share sales as a list of foreign financial institutions have cut holding in their Chinese banking partners this year, Lan Qi, board secretary of CMB, said in an interview on September 22. It goes for their domestic shareholders, too.
CMB's capital adequacy ratio and core capital ratio stood at 8.62 percent and 5.08 percent as at the end of June 2009. In order to replenish capital, it plans to raise not more than CNY 22 billion via delivering shares to existing shareholders. The plan is scheduled to be voted by its shareholders on October 17 and provided that it could be conducted smoothly, the bank's core capital adequacy ratio will hit 8.3 percent by then.
There is great possibility for the plan to gain shareholder approval, said industry observers. And the exact timetable will be the end of this year or the beginning of next. In their opinion, it is the CNY 22 billion share delivery plan that caused its domestic shareholder to launch the share sale.
(USD 1 = CNY 6.83)
Source: dycj.ynet.com (September 23, 2009)
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