The family-run Wing Lung Bank made it official yesterday that its two largest shareholders will sell off a combined 53 percent stake in the company.

Big mainland lenders such as Industrial & Commercial Bank of China (ICBC), China Construction Bank and global bank Standard Chartered Plc have been cited in reports as possible buyers of the Wing Lung Bank shares.

The confirmation of the family's desire to sell helped push up Wing Lung shares yesterday despite a big drop in the Hang Seng Index.

Shares of Wing Lung rose as much as 13.66 percent when the stock resumed trading yesterday afternoon.

The shares closed at HK$114, up 11.5 percent.

Chairman Michael Wu and his family are considering selling their combined 53 percent stake, the company said in a statement submitted to the Hong Kong Stock Exchange yesterday.

Family-controlled banks in Hong Kong are far less promising than their bigger and well-managed counterparts, so the families should either improve the bank's competitiveness to survive the market or sell their shares when they are still considered valuable by potential buyers, said Linus Yip, a strategist with First Shanghai Securities.

"Wing Lung's massive share sale might impact other family-run lenders in Hong Kong. It may cause other banks with similar backgrounds to review their management and better control their destiny," Yip said.

He said that as bigger rivals such as ICBC expand, smaller family-run lenders may struggle to stay independent, and more family-owned banks might seek bidders, as the big banks' desire to buy is stimulated.

Shareholders in Wing Lung have hired Credit Suisse and UBS AG to advise them on the possible sale.

Wu and his extended family and associates together control 63 percent of the stock, according to the bank's 2007 annual report.

Figures show that Hong Kong is home to 142 fully licensed banks. But the city's listed, family-owned banks are Wing Lung, Wing Hang Bank, Dah Sing Banking Group and Chong Hing Bank. These banks are each valued below $4.1 billion.

(HK Edition 03/21/2008 page2)