Monday, November 16, 2009

Major Players Jumping into China Minsheng Banking

Soros Fund Management LLC, founded by George Soros, has bought US$100 million to invest in China Minsheng Banking Corp Ltd, which plans to issue 3.82 billion H shares in an initial public offering on the Hong Kong Stock Exchange, according to China Knowledge.

In addition, private equity fund Hopu Fund has spent US$1 billion subscribing the H shares.

The U.S. Tiger Fund has reportedly inked an agreement with the Chinese lender to purchase US$50 million worth of Minsheng Bank's H shares before its road show in the U.S.

UK Atlantis Investment Management has also allocated US$50 million to invest in the Chinese bank, and it may expand the investment to US$100 million later.

The Minsheng, the eighth-largest bank in China, is expected to raise up to HK$36.3 billion through the offering, the largest IPO in Hong Kong this year.

Retail subscription of the H shares started from Friday and the IPO price range was set at HK$8.5 to HK$9.5 apiece. Trading of the H shares is scheduled to start on Nov. 26.

1 comment:

  1. If China's currency (renminbi) is ever un-pegged from the US dollar these investments could get a significant boost. This is certainly a typical Soros play. Maybe he's been talking to his former partner, Jim Rogers who wrote a book identifying some interesting investments called "A Bull in China."