Bank of Shanghai plans Hong Kong IPO

Intends to raise $2 billion from IPO.

Bank of Shanghai is preparing a listing application and may sell the shares in the third quarter of this year, according to banking sources. It might also sell shares in Shanghai at the same time.

Chinese banks are boosting capital through share sales in Hong Kong as domestic regulators maintain a freeze on stock offerings in Shanghai. The China Banking Regulatory Commission is issuing stricter capital requirements as it seeks to strengthen the financial resources of local banks.

Bank of Shanghai plans to raise a combined $4.8 billion in Hong Kong and Shanghai under a revised capital raising plan.

The lender, established in 1995, has some 270 outlets. It earned US$1.2 billion in 2012, up 29% year-on-year.