Chong Hing Bank raises capital for mainland push

Hong Kong-based Chong Hing Bank launches rights issue as its parent seeks to turn it into a major financial services provider in Guangdong province.

Chong Hing Bank raises capital for mainland push

Hong Kong-listed lender Chong Hing Bank launched a HK$3.71 billion $478 million rights issue on Monday in a bid to finance expansion on the mainland and bolster its capital base.

The deal, which represents 50% of the bank’s issued share capital, leaves existing shareholders facing heavy dilution, but potentially benefitting from considerable upside if the bank can successfully leverage its parent’s connections to push further into Guangdong Province.

In February 2014,...

To continue reading, please login or register for free

Print Edition

FinanceAsia Print Edition

CONFERENCES