China's Postal Savings Bank says some retail investors opt out of mainland listing (updated)

China Zhengtong Auto Services Holdings

04/12/2019 03:35

(Adds background on China bank woes)
    BEIJING, Dec 4 (Reuters) - Postal Savings Bank of China
 1658.HK  said investors had opted out of paying for 3% of
shares on offer in its Shanghai listing - a rare development
that underscores growing concerns over problems in China's
banking system.
    Nearly all were retail investors, PSBC said in a statement
late Tuesday.
    PSBC, China's biggest bank by number of branches, is seeking
to raise up to 32.71 billion yuan ($4.7 billion) with the share
sale, which includes a greenshoe option of 15%.
    Unlike other major IPO markets, in mainland China where IPOs
and share sales are usually heavily subcribed to, investors are
not required to pay before getting an allocation.
    Underwriters of the share sale will pick up the unsold
shares.
    Concerns about the health of China's banking sector have
grown this year after regulators seized control of Inner
Mongolia-based Baoshang Bank in May, citing serious credit
risks. That was followed by the rescue of four other regional
lenders by state and local goverments.
    Mid-sized China Zheshang Bank Co Ltd  2016.HK   601916.SS 
last month fell below its issue price on its first day of trade
in Shanghai, and is now down about 8% since listing.

($1 = 7.0389 Chinese yuan)

 (Reporting by Cheng Leng in Beijing and Engen Tham in Shanghai;
Editing by Edwina Gibbs)
 ((cheng.leng@thomsonreuters.com; +8610-5669-2129;))