CCB poised for domestic IPO

Regulators will meet on September 7 to review China Construction Bank's (CCB) plans for a domestic initial public offering expected to be worth US$7.5 billion, Bloomberg reported. If approved, it would be the second largest stock sale in the world this year. CCB's plan to sell as many as 9 billion shares puts it on course to join fellow Big Four lenders Industrial and Commercial Bank of China and Bank of China on the Shanghai bourse. Hong Kong-listed Chinese banks have raised a total of US$13.4 billion in the last year through domestic listings as they have spearheaded the government's move to boost the supply of good quality stocks. CCB's Hong Kong shares have gained 37% since it first announced in June that it planned to list domestically. CCB accounts for 22% of China's mortgages and 13% of overall loans. It saw profits jump 47% year-on-year in the first half of 2007.