Baosteel to buy into Shenzhen bank

Shenzhen Development Bank (SDB) will sell 120 million shares at the price of RMB35.15 (US$4.75) a share to Baosteel Group, China Business Net reported (in Chinese). Baosteel, China's largest steelmaker, will invest US$571 million to acquire 5.43% stake in the bank. The fund will increase SDB's capital adequacy ratio, raising its net tangible assets per share from RMB4.01 to RMB5.07. SDB remains the only bank in the A-share market with a capital adequacy ratio lower than 8%. The bank's posted ratio stood at 4.28% through the end of September.