Category: Money tips Release Date: 2007-04-19
"We do not care about Fuxi the impact of events on the bank, because it such a big bank ICBC is really negligible, we are concerned the bank could be China's largest and best banks, non-performing loans is minimal, and why the introduction of Goldman Sachs and non-major foreign banks as strategic investors. "10 9, a European fund managers in Hong Kong to attend the Industrial and Commercial Bank of China H shares after an international roadshow to promote told this newspaper.
October 9, ICBC chairman Jiang Jianqing, president Yang Kaisheng executives led by the Four Seasons Hotel in Hong Kong, ICBC's H shares commenced an international road show to attract about 500 international institutional investors to join in the issue, but few investors.
According to the above-mentioned charge of said one problem is that ICBC is the country's largest commercial banks, but whether it is the country's best commercial bank? Said Jiang Jianqing, ICBC is definitely the best commercial banks, and that ICBC is the first customer into the Mainland high-low-end of the bank and were selling their various products and for data classification management.
Another investor concern about the bank's non-performing loan ratio, said Jiang Jianqing, ICBC's new non-performing loan ratio is the four major state-owned commercial banks in the lowest. According to ICBC's first draft of the prospectus shows that ICBC to January 1, 1999 as a community, a breakdown of the old and new loans to non-performing loans. As of the end of June this year, only the old loans, the proportion of bad loans as high as 50.66%, but the non-performing loan ratio of new loans is only 1.86%, while new loans now account for 95.2% of total loans.
For the institutional investors queried what work behaviors like China Construction Bank (0939.HK) and Bank of China (601988.SH, 3988.HK), as the introduction of the world's leading commercial banks, but the introduction of Goldman Sachs as a strategic investor, Jiang Jianqing responded that this is a deliberate arrangement because as China's market opening, foreign banks will be ICBC's competitors, and now the introduction of foreign strategic investors, OK, let rivals master bank's internal data, resulting in conflict of interest.
"In fact, we asked only symbolic, the ICBC priced low, at least one percent of increase, coupled with this is China's largest bank, I think most investors will be offered for subscription, the question now is whether assigned to the shares." The above fund managers said.
ICBC syndicate source said ICBC H Shares of the IPO price range from 2.56 to 3.07 Hong Kong dollars, A share IPO price ranged from 2.6 to 3.12 yuan, counting the exchange factor, A, H shares for the same price. IPO price range is equivalent to 2006 book value 1.95 to 2.23 times higher than the current Bank of China Construction Bank, and the book value (2.4-2.5 times) is low, lower than the bank syndicate study estimated that a reasonable book value (2.36 -2.9 times).
The sources said that underpricing is in line with the capacity of A-share market and to allow A share investors profit margins.
According to the maximum offer price calculation and assuming the exercise of over-allotment option, the ICBC H Shares of the fund-raising total of up to 125 billion Hong Kong dollars, A shares of the total amount raised up to 46.6 billion yuan, totaling 21.8 billion U.S. dollars off the contract, will break the NTT DoCoMo in 1998, the record set in the world's largest IPO.
Fund managers, there is no question there is still a concern, is the major shareholder of the bank's stake at any time Huijin flow can be turned into H shares, if Huijin substantial reduction in the H-share market will put pressure on H shares.
Jesse Wang, vice chairman while Huijin has reassured, he told this newspaper, said: "In accordance with the requirements of the State Council, we need a long time to maintain absolute control of state-owned banks, so exchange payment and the Ministry of Finance on behalf of the State of the shares held by ICBC will not be arbitrarily underweight. "
In the A, H shares issued and included in over-allotment, the gold and Treasury Department were holding 118 billion ICBC shares, each of the enlarged share capital of 36.98%, a total of 73.96%.
ICBC's H shares not only welcomed by institutional investors is expected to retail investors would also be active subscription, have the opportunity to break the Bank of China, 940,000 people subscribed Hong Kong record.
ICBC shares for transfer of the work of Central Registration Hong Kong companies are vigilant, in particular, launched a new e-subscription network platform to encourage more retail electronic subscription, to reduce manual entry of data may cause errors. Hong Kong lagged behind in this respect than their Mainland counterparts, most of the retail handwritten application form attached to check or cashier's checks, pay the subscription fee.
Executive director of the Central Registration Huanglong and October 9 at a press conference that the new platform, there is no capacity constraints, the theory can handle an unlimited number of applications, investors can electronically complete and submit the application form, by electronic means of payment, and through e-mail to receive the allocation of purchase informed of the results.
