China's Construction Bank landing on A share moarket!

China's Construction Bank landing on A share moarket!
Sep 25, 2007 02:43
KEVIN0518 Points: Join Date: Mar 13, 2007 Status: offline	Today China's Construction Bank went pulic at the Shanghai Stock Exchange. In the morning, its share rose about 33.64% to 8.62 yuan per share. CCB becomes the third stated owned listed commercial bank after ICBC ( Industrial and Commerical Bank) and BOC( Bank of China). What's more, the price of its share made CCB become the largest share on A share market. Guo Shuqi, the chairman of the bank said that about 99 percent income comes from mainland. Listing on A share market can make CCB grow bettter and better. In its IPO, CCB has raised about 58 billion yuan (7.7 billion US dollars), which exceeds 46.6 billion yuan of the ICBC last year. Before its listing, some analysts worried CCB's listing might bring negative impact on A share market. However, the result was encouraging. A shares did not drop but rose drastically. Meanwhile, some investors has been worrying the blue bubble (bubble in blue chips) for a long time. With CCB's landing on A share market, the bubble might be relieved.

Sep 25, 2007 02:43

KEVIN0518
Points:
Join Date: Mar 13, 2007
Status: offline

Today China's Construction Bank went pulic at the Shanghai Stock Exchange. In the morning, its share rose about 33.64% to 8.62 yuan per share. CCB becomes the third stated owned listed commercial bank after ICBC ( Industrial and Commerical Bank) and BOC( Bank of China). What's more, the price of its share made CCB become the largest share on A share market.

Guo Shuqi, the chairman of the bank said that about 99 percent income comes from mainland. Listing on A share market can make CCB grow bettter and better. In its IPO, CCB has raised about 58 billion yuan (7.7 billion US dollars), which exceeds 46.6 billion yuan of the ICBC last year.

Before its listing, some analysts worried CCB's listing might bring negative impact on A share market. However, the result was encouraging. A shares did not drop but rose drastically. Meanwhile, some investors has been worrying the blue bubble (bubble in blue chips) for a long time. With CCB's landing on A share market, the bubble might be relieved.

Sep 25, 2007 03:02	#1
APAULT Points: Join Date: Mar 11, 2006 Status: Offline	That means this government owned bank was sold to individuals and other corpoartions who made an instant profit, while the common people lost out by that amount. Why does the goivernment keep giving money to the rich?

Sep 27, 2007 01:53

JIMMYB
Points:
Join Date: Feb 7, 2007
Status: Offline

Why do those state owned banks go public? This is part of their reform plan. China has promised to open its financial market to foreign banks and institutions. And more and more fireign banks have entered China to compete with domestic banks no matter they are state owned or commercial banks. In order to improve their competence and secure China's financial market develop heathily, those banks need large amount of money. Going public is the quickest and the most effective way to raise capitals. In this aspect, it is good to let those banks go public.

On other hand, I strongly support those banks to reform. Since they are owned by state, they have almost controlled the financial area. This is not good for China to fufill its promise to open its financial market. What's more, there are some advantages if those state banks are sold to individuals. In order to survive the competition, I believe that their servive will be improved a lot. For customers, it is good.

Oct 12, 2007 10:10	#3
APAULT Points: Join Date: Mar 11, 2006 Status: Offline	I agree with Jimmy, but the offerring should have been at a higher price.

Oct 16, 2007 04:42	#4
JIMMYB Points: Join Date: Feb 7, 2007 Status: Offline	Quote: the offerring should have been at h higher price. I guess that they must have made a plan to raise funds, not randomly. Otherwise, they will have a great impact on the stock market. Sharp shock in the stock market should be avoided.

Post a Reply to: China's Construction Bank landing on A share moarket!