Banks seeking to list turn to HK
Banks on the mainland face many challenges in raising funds, said Lian Ping, an analyst with Bank of Communications Co Ltd. Risk-weighted assets will continue growing fast, so if banks don't seek other financing channels, it will be hard for them to maintain sufficient capital.
No banks have gone public on mainland exchanges in the past six years. There are now 14 banks waiting for approval in the A-share market.
Bank of Hangzhou Co Ltd and Bank of Dongguan Co Ltd are still awaiting the results of reviews by the China Securities Regulatory Commission.
Huishang Bank, Bank of Shanghai and Bank of Jiangsu Co Ltd are still in the initial stages of the examination process.
On the CSRC website, Bank of Chongqing's status is shown as "suspended", and Bank of Dalian Co Ltd abandoned its application for an A-share IPO.
However, being listed in the H-share market is even more complicated. Applicants must first obtain the approval of the CSRC. They also face higher audit costs and increased disclosure requirements.
