Date
18 October 2017

Cinda sees CAR rising to 23% after IPO, official says

China Cinda Asset Management Co. Ltd. (01359.HK), one of four companies created in 1999 to buy bad debt from the nation’s banks, expects its capital adequacy ratio to hit 23 percent after its Hong Kong initial public offering, vice president Gu Jianguo {顧建國} said Wednesday. The figure was 17.8 percent at end-June, above the 12.5 percent regulatory threshold, Gu told reporters in Hong Kong. He said Cinda’s balance sheet is healthy, with enough room to increase its leverage up to eight times from the present 4.5 times. The state-controlled asset manager plans to raise as much as HK$19.04 billion (US$2.5 billion) by selling 5.32 billion shares at an indicative price range of HK$3 to HK$3.58 apiece.

– Contact HKEJ at [email protected]

YL/JP/RA

 

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