- CNTV English - CCTV News

Analysts: ABC impact on market limited

06-30-2010 14:10 BJT

Watch Video

Play Video

The Agricultural Bank of China has also announced the IPO price range for its Shanghai shares at 2.52 yuan to 2.68 yuan. Market insiders say this price range is reasonable. Its public listing won't have big impact on the market.

The current price-to-book, or P/B ratio of banking shares is between 1.7 to 1.9 at average, the price-to-earning, or P/E ratio is 8 to 10. For AgBank, if it finally selects upper limit of the price range 2.68 yuan, the P/B ratio will be 1.6 and P/E ratio between 8.2 to 8.7. Both are low compared to the industry average.

One investor said "I think the price is acceptable. It is close to market expectations."

One investor said "I think the price is a little bit low. The P/E ratio should be about 10. The shares will rise."

One investor said "I will subscribe for AgBank shares."

In addition to individual investors, large state-owned enterprises, overseas sovereign funds, hedge funds and private financial groups have all showed interest to AgBank's IPO. So far it has received subscription for 70 billion shares, 16 times than planned.

But analysts say even based on the upper limit of its price, AgBank's listing will withdraw capital from the market less than 1 trillion yuan. It won't place too much pressure on market capital.

Liu Jingde, Vice Manager of Cinda Securities said "Capital will become tight in the market for a while as AgBank's IPO will absorb some capital. But the impact is only for the short term. In the long term, tens of billion yuan of capital raising won't change market overall performance."

Hong Kong analysts echo the view. They says AgBank will absorb more capital from the Hong Kong market. But for Hong Kong, an international financial center with substantial overseas capital coming in, the impact will be limited.

Editor:Xiong Qu |Source:

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program