Valuation doubts cloud Minsheng listing

Shanghai-listed China Minsheng Banking Corp's plans for a HK$1 billion listing in Hong Kong – much anticipated because it would mark the first time a mainland bank floated "overseas" – appeared to be hitting the shoals in the wake of shareholder concern over dilution of share value. Hong Kong market valuations of double-listed mainland H-share companies typically fall well short of Shanghai valuations, which have little bearing on reality. The bank lodged its IPO application in June and, according to a South China Morning Post report, "significant" shareholders have gone cold on the listing over pricing issues. Said one source quoted by the Post: "The management doesn't want to be seen as selling assets cheap."