China Everbright headed for $7bn HK share sale

CHINA Everbright Bank may raise around $7bn (£4.3bn) through a share sale in Hong Kong just six months after its Shanghai initial public offering (IPO), leading the way for more fundraising by smaller banks.

Chinese banks face a tough time as Beijing aggressively tightens liquidity, with a rise in the reserve requirement ratio announced last week.

Those measures and the possible slowdown in China’s economy could encourage banks to consider raising more money from capital markets.

Everbright Bank had already expressed its intention to sell H-shares, but the plan announced yesterday caught analysts by surprise, coming only six months after the Chinese lender’s $3bn IPO in Shanghai.