Thursday, October 20, 2005

Bank_China Construction Bank listed in Hong Kong

The innitial public offering of China Construction bank, due to be listed in Hong Kong a week later, will raised the largest amount of money in the world this year.

So what? CCB is only the third-largest bank in China, While the first two, Industrial & Commercial Bank of China and Bank of China are still waiting in the queue.

I discussed with some colleagues about the reason why investors are interested in China Construction bank. He said people think CCB are the healthies among the Big Four(State-owned banks in China), coz it is the earliest-listing one.

Then I ask:

If the government asked the bank to do something but shareholder didn't agree, then what will the bank do?

He shrugged his shoulders without saying anything.

I am wondering the answer, too.


Lutz_W said...

Amy, don't you forget that investors often make emotional decisions instead of the rational ones they should make.
As a gweilo I can tell that most european financial service providers seem to be totally drunk about grabbing some shares from chinese banks, that go public.

I'm not an expert about mainland economy, but IMHO the government is quite clever to get rid of it's mountain of debts and numerous foul depreciations as easy as this... Maybe HK-investors have some other agenda, dunno... what do you think?

:) <- Lutz
Not Different But Better

Amy Gu said...

haha, I agree. I think Hong Kong investors are the smartest investors in the world, knowing both the western financial market and Chinese culture. As China is "hot"now, HK investors, of course, could be crazy, but it may be just for short term.

We could do a survey on those CCB investors: how many percent of them would like to invest in a long term, say, more than three years?

Lutz_W said...

LOL, possibly they would keep their investment until they can grab a share from the Bank of China, huh?

Now, I wouldn't think that the CCB is really the healthiest of those 3 or 4 candidates, and thus gets listed public first. We shouldn't forget that mainland was pushed by the WTO to open its banking sector by the end of 2006.
How about this: with the deadline to "auction away" the banks, they are not starting with the "crown-jewels" right away. They start with a smaller appetizer to warm up the market. Heck, I would do absolutely the same...

:) <- Lutz
Not Different But Better

Amy Gu said...

haha,you bet.... smarter than Chinese businessmen