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HONG KONG, Dec 16, 2010 - (ACN Newswire) - Boasting its presence as the first rural commercial bank in China, Chongqing Rural Commercial Bank has become the talk of the town and successfully listed in Hong Kong. As compared with most of the urban commercial banks with remote prospects of A-share listing, Chongqing Rural Commercial Bank inarguably holds the key to success.
A market focus backed by well-capitalized foreign investors: Chongqing Rural Commercial Bank introduced 4 cornerstone investors who subscribed for US$240 million of shares in total, among which Nexus Capital Investing Ltd., an investment company controlled by the Royal Family of Abu Dhabi, subscribed for US$100 million of shares, while Value Partners subscribed for US$80 million of shares. Chow Tai Fook Nominee Limited owned by Hong Kong tycoon Cheng Yu-Tung as well as Fubon Life Insurance controlled by the Taiwan-based Fubon Financial Holding subscribed for US$30 million of shares, respectively.
In tandem with the State's efforts in Chongqing's development, China's government has devised a number of preferential policies on rural finance and the prospect of the rural bank industry in Chongqing remains promising. In view of the considerable size of assets of some of China's urban commercial banks in Hong Kong context, and given the ample room of development for local medium and small-sized banks as well as their sound operations, these banks worth long-term investment and are recognized by investors. In fact, Hong Kong's capital market considers it a sound investment as it is the first time for a provincial bank to go listing in Hong Kong.
Kenny Tang, Head of Research & Executive Director of Redford Asset Management Ltd., believed that Chongqing Rural Commercial Bank, being the first provincial rural commercial bank to launch share offering in Hong Kong, served as a role model. Adding the huge potential of business growth in the rural economy, an interest spread of 3% and a rapid business growth, Chongqing Rural Commercial Bank has a promising prospect. Chan Kai Fung, Chief Executive Officer of Bright Smart Securities stated frankly that banks focused on rural areas have a higher visibility.
Chongqing Rural Commercial Bank ranks third among all the rural commercial banks in China, only next to Beijing Rural Commercial Bank and Shanghai Rural Commercial Bank.
The gross profit of Chongqing Rural Commercial Bank amounted to RMB1.9 billion last year. An institutional investor, thereby, holds a view that, as the first local bank listed in Hong Kong featuring the concept of the West and with a larger volume of rural loans than that of the Agricultural Bank of China, Chongqing Rural Commercial Bank is highly competitive.
The offer price of Chongqing Rural Commercial Bank is set at HK$5.25. According to its prospectus, from June 30, 2009 to June 30, 2010, its net profit had jumped from RMB920.5 million to RMB1,660.4 million, representing an increase of 80.4% which was mainly attributable to the increase of net interest income, net fee and commission income and investment income.
Chongqing Rural Commercial Bank, the first listed domestic rural commercial bank, was listed today with an opening price of HK$5.45, which surged by 3.81% as compared with the offer price of HK$5.25. LIU Jianzhong, the chairman of Chongqing Rural Commercial Bank was very pleased with the price performance and was much honored that Chongqing Rural Commercial Bank had become the first domestic rural financial institution listed in Hong Kong.
Contact:
Wonderful Sky Financial Group Company Ltd.
Chow Tsz Lung
Tel: +852 3970 2120
Email: tlchow@wsfg.hk
Jocelyn Yiu
Tel: +852 3970 2191
Email: jocelynyiu@wsfg.hk
Astor Lo
Tel: +852 3970 2189
Email: astorlo@wsfg.hk
Fax: +852 2815 1352
Topic: IPO
Source: Chongqing Rural Commercial Bank
Sectors: Daily Finance
https://www.acnnewswire.com
From the Asia Corporate News Network
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