Bank of China IPO on Hong Kong Exchange
- Share via
In what could be Hong Kong’s biggest initial public offering this year, the Bank of China (Hong Kong) Ltd. is preparing to list on the stock exchange this month, possibly leading the way for other Chinese state-run banks.
The bank’s international road show for the IPO, which is intended to raise $3 billion, starts today. The reception it receives could indicate the prospects for other state-run banks hoping to tap international capital as they rebuild asset bases.
In the run-up for the listing, set for July 25, Bank of China (Hong Kong) has sought to distinguish itself from mainland parent Bank of China, which is burdened with bad loans and troubled by alleged misconduct by former managers.
Cleaning up its books ahead of the listing, the Hong Kong unit has transferred billions of dollars of its own non-performing loans to an asset management company set up by the parent bank and written off hundreds of millions more. Still, the bank reported that non-performing loans accounted for 11% of its total loans at the end of 2001.
To prepare for the listing, Bank of China (Hong Kong) was formed Oct. 1 by a merger of 10 of the 12 Hong Kong banks within the Bank of China Group.
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
