Money

Hua Xia Bank shares drop by daily limit

(Xinhua)
Updated: 2010-05-06 15:38
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Hua Xia Bank Co's shares dived by the 10-percent daily limit Thursday after the bank said it will raise 20.8 billion yuan ($3.05 billion) through a private share replacement.

Hua Xia Bank shares stood at 11.45 yuan per share when trading was suspended.

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A total of 1.86 billion shares will be sold to its three major shareholders - Shougang Group, Deutsche Bank and State Grid Group - at 11.17 yuan per share, the bank said in a statement filed with the Shanghai Stock Exchange Thursday.

The proceeds will be used to replenish the bank's capital, the statement said.

After the deal, with a 20.98-percent stake, Shougang Group will replace Deutche Bank as the bank's largest shareholder. Shougang currently holds a 13.98 percent stake.

At the end of 2009, the bank reported a capital adequacy ratio (CAR) of 10.2 percent, just over the regulatory requirement of 10 percent.
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