China Minsheng Considers London or Hong Kong Listing
to Fund Expansion
The bank hopes to raise US$1 billion to fund its expansion.
Citigroup Inc., Deutsche Bank AG and Goldman Sachs are
in discussions to manage the offering.
The bank's capital adequacy ratio is now 7.7 percent,
which puts it under the 8 percent capitalization recommended
by Basel I.
Chinese banks are increasing their assets to help prepare
for competition as discriminatory barriers against foreign
lenders come down following China's joining the World
Trade Organization in 2001. Under the terms of accession,
all discriminatory barriers must come down by 2006.
Most bankers see the Chinese retail banking sector as
the last great frontier for retail banking. China is currently
undergoing a rapid urbanization and creation of a middle
class, and will host the 2008 Beijing Olympics and 2010
World's Fair in Shanghai.
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