Date
23 July 2018

Huishang Bank says Vanke investment flags central China takeoff

Huishang Bank Corp. Ltd. chairman Li Hongming {李宏鳴} said Wednesday that the investment of China Vanke Co. Ltd. (000002.CN) in its Hong Kong initial public offering reflects the developer’s confidence in China’s central regions.

Rapid industrialization and urbanization will drive housing demand in these areas, opening up opportunities for developers, Li told a media conference Wednesday.

Vanke will invest up to HK$3.3 billion (US$423.1 million) in Huishang Bank’s flotation, becoming a cornerstone investor in the share sale which is worth as much as HK$10.1 billion, according to the listing prospectus.

Huishang Bank plans to issue 2.61 billion shares on Hong Kong’s main board, 95.7 percent of which are new shares. The remaining 4.3 percent are old shares.

Meanwhile, president Wu Xuemin {吳學民} said the bank expects its net interest margin to remain at “relatively high levels” after repricing cut it to 2.65 percent in the first half from 3.25 percent a year ago.

– Contact HKEJ at [email protected]

YL/JP/RA

 

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