Date
29 March 2017
Postal Savings Bank, a unit of China Post Group, is gearing up for a multi-billion dollar initial public offering. Photo: fang.com
Postal Savings Bank, a unit of China Post Group, is gearing up for a multi-billion dollar initial public offering. Photo: fang.com

Postal Savings Bank seeks strategic investors ahead of IPO

Postal Savings Bank of China is stepping up efforts to secure strategic investors ahead of a planned multi-billion dollar initial public offering, the Hong Kong Economic Journal reported.

The bank, a unit of state-owned China Post Group, could raise anywhere between US$10 billion and US$25 billion from its IPO, the report said.

In the first half of this year, Postal Savings Bank is said to have added new lending balance of 372.9 billion yuan, ranking it the fifth among peers in the country.

The new loan amount represents 23 percent growth from a year ago, the highest among all large commercial banks in the country, Vice President Xu Xueming was quoted as saying.

As of the end of June, the lender’s non-performing loan ratio stood at 0.76 percent, up 0.12 percentage point compared with the level at the end of last year.

The ratio was just half of the market average, reflecting the postal bank’s better quality of loan assets.

Xu, meanwhile, revealed that the bank has pumped 74 billion yuan to the stock market through lending to China Securities Finance Group, supporting the nation’s efforts to halt the slide in equity prices.

Xu spoke to reporters Thursday, but did not specify the size, time or location of Postal Savings bank’s IPO, Reuters reported. 

Some media reports have said earlier that the bank could launch a dual offering in Shanghai and Hong Kong.

[Chinese version中文版]

– Contact us at [email protected]

VW/JP/RC

Hong Kong Economic Journal

EJI Weekly Newsletter

Please click here to unsubscribe