China's Guiyang Bank gains 44 percent on debut

Bank of Zhengzhou Co

16/08/2016 07:10

BEIJING, Aug 16 (Reuters) - Bank of Guiyang  601997.SS , the 
former city commercial lender based in China's southwest Guizhou 
province, gained the maximum 44 percent on debut Tuesday, the 
latest bank to raise funds in public markets and through private 
placements. 
    The bank's shares jumped to 12.23 yuan, a gain of 3.74 yuan 
per share from its opening price.  
    Most Chinese firms rise 44 percent, the most allowed, on 
their debut, partly due to regulators' guidance on IPO prices. 
    China's banks have issued 620 billion yuan ($93.47 
billion)in equity, including share capital raises and preference 
share issues, between the second half of 2014 and first half of 
2016, according to research published by UBS Securities in Hong 
Kong. 
    Bank of Guiyang, which raised 4.25 billion yuan by selling 
at 8.49 yuan per share, earlier said its initial public offering 
had attracted interest amounting to 1,340 times the amount 
offered.  urn:newsml:reuters.com:*:nL3N1AL4CD 
    China's third largest city commercial lender Bank of Jiangsu 
 600919.SS  raised around 7.24 billion yuan in its IPO in early 
August.  
    China Zheshang Bank  2016.HK  raised $1.94 billion in March 
and is the biggest new listing in Hong Kong so far this year, 
and Bank of Tianjin  1578.HK  raised another $990 million in the 
same month. 
    In 2015, Bank of Jinzhou  0416.HK , Bank of Qingdao 
 3866.HK  and Bank of Zhengzhou  6196.HK  raised $2.3 billion in 
funds in Hong Kong. 
    China's commercial banks have been scrambling to raise 
capital to help recapitalize their operations and write-off 
rising bad debt. 
    Bank of Guiyang reported its non-performing loan ratio 
reached 1.48 percent at the end of 2015, amounting to 1.234 
billion yuan. 
    The NPL ratio for China banks hit 1.81 percent at the end of 
June, according to data from the China Banking Regulatory 
Commission. 
     
($1 = 6.6332 Chinese yuan) 
 
 (Reporting By Matthew Miller and Engen Tham in Shanghai; 
Editing by Biju Dwarakanath) 
 ((matthew.miller1@thomsonreuters.com;)) 
 
Keywords: CHINA GUIYANGBANK/IPO