Weak sentiment won't delay AgBank IPO
Tuesday, 11 May 2010
BEIJING, May 10 (Reuters): Agricultural Bank of China, aiming for the world's largest-ever initial public offering, will press ahead with its plans despite weak market sentiment, one of its underwriters said Saturday.
Market jitters will probably delay the launch of an international board in Shanghai for the trading of overseas firms' shares, Li Jiange, chairman of China International Capital Corp (CICC), told reporters on the sidelines of a forum.
But when asked whether AgBank might postpone its dual listing, which could be as big as $30 billion, in Hong Kong and Shanghai, he said: "I think there will be no impact."
Shares in both Hong Kong and Shanghai just finished their worst week in months, battered by worries about Greek debt as well as Beijing's tightening campaign to cool the economy, particularly the real estate sector.
CICC, China's biggest investment bank, is an underwriter for AgBank's IPO, as well as a listing by China Everbright Bank.
A delayed launch for the international board would mark the first set-back for China's domestic financial markets in the wake of the recent turmoil. Hong Kong has already been hit, with conglomerate Swire Pacific this week pulling a $2.7 IPO set for that market.
Just 10 days ago, a government official said China was on course to finalise rules this year allowing foreign companies to list in Shanghai.
Market jitters will probably delay the launch of an international board in Shanghai for the trading of overseas firms' shares, Li Jiange, chairman of China International Capital Corp (CICC), told reporters on the sidelines of a forum.
But when asked whether AgBank might postpone its dual listing, which could be as big as $30 billion, in Hong Kong and Shanghai, he said: "I think there will be no impact."
Shares in both Hong Kong and Shanghai just finished their worst week in months, battered by worries about Greek debt as well as Beijing's tightening campaign to cool the economy, particularly the real estate sector.
CICC, China's biggest investment bank, is an underwriter for AgBank's IPO, as well as a listing by China Everbright Bank.
A delayed launch for the international board would mark the first set-back for China's domestic financial markets in the wake of the recent turmoil. Hong Kong has already been hit, with conglomerate Swire Pacific this week pulling a $2.7 IPO set for that market.
Just 10 days ago, a government official said China was on course to finalise rules this year allowing foreign companies to list in Shanghai.