CCB share block sold 6 months after IPO

$167 million transaction faces extra challenge as China raises interest rates during bookbuilding.
An existing shareholder of China Construction Bank last night April 27 offloaded a HK$1.3 billion $167 million block of shares in a sale that had the unfortunate honour of being launched half an hour before China announced its first rate hike in 18 months.

Among all the equity offerings that were in the market yesterday, CCB was probably the most negatively affected by the monetary tightening because lenders are so sensitive to economic growth, said one banker who watched the dealflow last night.

The news out of China put downward pressure on European and US markets, which further increased the wariness among investors.

The PeoplesÆ Bank of China said it will raise yuan lending...
¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222