CCTV.com - CNTV English - CCTV News

China Everbright Bank makes strong debut

08-19-2010 08:45 BJT Special Report:Everbright Bank IPO |

Watch Video

Play Video

China Everbright Bank soared on its Shanghai stock market debut today, trumping forecasts. The listing is the second largest this year, after the Agricultural Bank of China. The strong debut is a good sign for other banks' listing or financing plans on the domestic stock market.

China Everbright Bank ended its first trading day up 18 percent at 3.66 yuan. It opened at 3.37 yuan, up 8.7 percent from its IPO price. The performance is slightly stronger than market expectations.

The share price gains easily beat those made by the Agricultural Bank of China, the world's biggest IPO. The state-owned lender's Shanghai shares rose less than 1 percent on its debut in mid-July.

The positive result also bodes well for other lenders that are lining up to ask investors for tens of billions of dollars, to shore up their balance sheets.

Everbright Bank Chairman Tang Shuanging reiterated its ambitious goal at the debut.

Tang Shuangning, Chairman of China Everbright Bank said "We have disclosed all management indices and the development outlook of Everbright Bank to the public before. In short, that is to double our assets in four years and to double our profit in two years. To leave some leeway, we say we would aim for two to three years."

Analysts attribute the strong rise to investor optimism about smaller Chinese banks and their strong earnings reports.

Doris Chan, BNP Paribas Analyst said "Smaller banks have higher financial leverage, and given their size is much smaller, they have a lot more operational flexibility to change into new strategy."

But analysts also say the lender may not be able to sustain its gains over the next few weeks, because the Shanghai market could turn less favorable and the banking sector's earnings growth may decline in the second half.

It only took the nation's 11th largest lender less than a month to get listed, setting a record for an A-share listing. If over-allotment options are exercised, Everbright could increase the offering to seven billion shares and raise 21.7 billion yuan.

Editor:Xiong Qu |Source: CNTV.CN

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