|Bid||5.200 x 0|
|Ask||5.200 x 0|
|Day's Range||5.200 - 5.260|
|52 Week Range||4.110 - 5.370|
|Beta (3Y Monthly)||1.19|
|PE Ratio (TTM)||N/A|
|Earnings Date||Oct 29, 2019|
|Forward Dividend & Yield||0.22 (4.21%)|
|1y Target Est||5.60|
(Bloomberg) -- A Chinese stock closed below its listing price on debut for the first time in seven years, showing how weak investor sentiment has become.Luoyang Jianlong Micro-Nano New Materials Co. fell 2.2% on Shanghai’s Star board Wednesday, the first mainland listing to flop on opening day since Haixin Foods Co. plunged 8% in October 2012, according to data compiled by Bloomberg.The chemical product maker’s listing comes amid a flurry of initial public offerings that have faded quickly. Trading activity in China is slowing and there has been a steady decline in new stock accounts, signaling increasing pessimism in China’s stock market.“Luoyang Jianlong’s debut flop sends a clear signal to the market that buying into IPOs has become more and more risky,” said Jiang Liangqing, a money manager at Ruisen Capital Management in Beijing.“It will become more difficult for companies to raise money from the capital market as the deteriorating performances of new listings will deter investors,” he said. “On the other hand, it shows that things are becoming increasingly market-driven.”A recent run of faltering listings comes at an awkward time for China, which is beefing up efforts to mitigate funding challenges faced by local firms by widening access to equity financing. Beijing has made it a priority to ensure the country’s capital markets play a bigger role in bolstering economic growth, which has slowed to its weakest rate in almost three decades amid a trade war with the U.S.China in recent days moved to calm market concerns about a flood of equity issuance. State media reported Sunday and Monday that the securities regulator will approve future proposed IPOs at a “steady” pace. On Tuesday, a front-page commentary by the China Securities Journal cited brokers as saying stock-market liquidity would be sufficient next year.For years, stock debuts in China were a slam-dunk trade after the regulator in 2014 imposed an unwritten valuation cap on IPOs, which saw new listings pop 44% on their first trading day. The guidelines were drawn up after a run of flops resulted in a temporary suspension of new listings.A repeat of that suspension scenario is currently unlikely, said Ruisen Capital’s Jiang, given Beijing’s drive to have the capital market play a larger role in corporate financing.Large-cap IPOs are also showing signs of diminishing interest. Last week, Postal Savings Bank of China Co. -- the nation’s biggest stock listing since 2010 -- drew the lowest demand from retail investors in almost half a decade. Underwriters were then left holding unsold stock.Two other companies listed Wednesday posted better debuts. Primeton Information Technologies Inc. rose 61% on the Star board, while Hiecise Precision Equipment Co. advanced the 44% maximum on the ChiNext board.(Adds background on Chinese IPOs from sixth paragraph)\--With assistance from Matt Turner.To contact Bloomberg News staff for this story: Ken Wang in Beijing at firstname.lastname@example.orgTo contact the editors responsible for this story: Sofia Horta e Costa at email@example.com, David Watkins, Kevin KingsburyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
China's biggest initial public offering in four years faces a woeful start ahead of next week's trading debut by Postal Savings Bank of China, as a record number of investors declined to take up their allotted shares.Onshore traders backtracked on 119 million allotted shares worth a combined 653 million yuan (US$92 million), or 2.3 per cent of its secondary issuance on the Shanghai Stock Exchange, according to a filing. This was the largest withdrawal since investors turned their backs last month on China Zhejiang Bank, causing the regional lender's shares to fall below their offer price on the second day of trading, in the biggest listing flop in seven years on the bourse."The number of investors who subscribed online and then backed out is especially high, implying that retail investors are quite pessimistic about the company," said Cui Xin, strategic analyst at China Galaxy Securities. "The overall sentiment on IPOs is quite gloomy."The snub casts a pall over what should have been a high point for the bigger of China's two stock markets, as the Beijing-based bank that manages China's largest branch network with 39,680 outlets goes to market to raise 28.4 billion yuan. The reception mirrors the lender's US$7.3 billion fundraising in Hong Kong in 2016, which became one of the worst debut performers among giant IPOs when its shares rose by a mere 0.2 per cent when they began trading.Postal Savings Bank, which began life as a deposit-taking subsidiary of the nation's postal service, isn't alone in the doldrums. Dozens of new banks and technology start-ups have fizzled in their trading debuts on the Star market in Shanghai, with their share prices falling below their offered prices, in stark contrast to the buzz and spectacular gains that used to greet first-day trades.China's securities regulator has had a hand in letting the air out of the bubble, with its recent relaxation of listing rules, which hastened the pace of companies going to market and increased the supply of new stocks in the market, Cui said."This suppressed the returns of IPOs, and investors are becoming more cool-headed about them," he said.Postal Savings Bank, China's fifth-largest bank by assets, could raise an additional 4.3 billion yuan if it chooses to exercise the so-called greenshoe option in full, which allows a company to sell extra shares to underwriters to stabilise share price in the 30 days following a listing.The lender's unusual greenshoe arrangement " it is the fourth company in A-share market's history to use the mechanism " may have also scared away some investors, amid concern that a possible increase in shares would dilute earnings after the listing, Cui said.Under the current system, Chinese investors do not need to freeze their capital or pay in advance for new share subscriptions. If they fail to pay for the allotted shares three times, they will be barred from taking part in new shares for six months.On popular online investment forum Xueqiu, many traders complained what they see as unfairly high valuation level of Postal Savings Bank. Some also said the withdrawal is a gesture to signal their dissatisfaction with the recent surge in new shares.This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2019 South China Morning Post Publishers Ltd. All rights reserved. Copyright (c) 2019. South China Morning Post Publishers Ltd. All rights reserved.
BEIJING/SHANGHAI (Reuters) - Postal Savings Bank of China said investors had opted out of paying for 3% of shares on offer in its Shanghai listing - a rare development that underscores growing concerns over problems in China's banking system. Worries about the health of China's banking sector have grown this year after regulators seized control of Inner Mongolia-based Baoshang Bank in May, citing serious credit risks. China's biggest bank by number of branches is seeking up to 28.45 billion yuan ($4 billion) in the first part of the share sale, which was 79 times oversubscribed - a low level as mainland Chinese share offerings are often thousands of times oversubscribed.
Postmen and women should add sniffy investors to such traditional hazards as fierce dogs and broken elevators. The Hong Kong-quoted shares of Postal Savings Bank of China are up 22 per cent this year, reflecting the impressive potential of its 550m retail clients. Its bad loan ratio stands at less than half its peers at just 0.8 per cent. As a state-run bank, there should be no lack of cornerstone investors to support the listing.
Postal Savings Bank of China (PSBC) , the state bank with the largest branch network, said it had signed a strategic cooperation agreement with fintech giant Ant Financial on Wednesday. The pact with the Alibaba-backed financial firm will focus on areas such as digital payments, online lending, rural finance and corporate finance, the bank said in a statement sent to Reuters.
Postal Savings Bank of China, which operates the biggest branch network among the country's state-owned lenders, said it has picked Shanghai for a secondary listing of its shares, in what would be the largest fundraising exercise on the mainland in more than four years.The Beijing-based bank plans to raise up to 32.71 billion yuan (US$4.66 billion) through an issue of between 5.17 billion and up to 5.95 billion A shares at 5.5 yuan each, according to a stock exchange filing.It earlier raised HK$59.15 billion from the sale of so-called H shares on the Hong Kong stock exchange in 2016, one of the biggest IPOs that year. The stock was little changed at HK$5.14 on Wednesday, having risen 24 per cent this year versus a 7.2 per cent gain in the Hang Seng Index.The Shanghai plan could become China's largest domestic offering since Guotai Junan Securities collected 30 billion yuan from its IPO in 2015, assuming it manages to sell the mid-point of the shares on offer. The deal would also rank as the world's third largest this year after Uber Technologies' US$8.1 billion listing in New York in May and Budweiser Brewing Company APAC's US$5.8 billion IPO in Hong Kong in September. China's Megvii considers delaying IPO on US trade blacklist concernsPostal Savings Bank, with 168,000 employees on staff at the end of June, was established as a deposit-taking subsidiary of the country's postal service and wasn't licensed as a bank until 2007. It serves 600 million individual customers across a network of 40,000 branches in China, from the Tibetan city of Lhasa in the Himalayas to Beijing.The bank held 9.1 trillion yuan of savings at the end of September and gave out 4.8 trillion yuan of loans to customers. Net profit rose 16 per cent to 54.29 billion yuan in the first nine months this year from a year earlier, according to its financial report. Nearly half of its customers are located in rural China away from the biggest cities. China's best-selling baby milk maker likely get solid bids in retail IPOPostal Savings Bank will be the 14th Chinese lenders to tap investors in both the mainland and Hong Kong stock exchanges for capital. Net proceeds from its Shanghai offering will be used to strengthen its capital base and business development, according to its filing.Subscription for the new shares has been postponed to November 28 from November 7, it said, without giving a reason.There were 41 stock sales on the Shanghai Stock Exchange in the first nine months this year, raising an equivalent of US$7.3 billion, according to data compiled by Refinitiv, making it the fourth best venue for IPOs this year. The bourse recorded 46 IPOs in 2018 with total proceeds of US$10.4 billion.This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2019 South China Morning Post Publishers Ltd. All rights reserved. Copyright (c) 2019. South China Morning Post Publishers Ltd. All rights reserved.
By buying an index fund, investors can approximate the average market return. But if you buy good businesses at...
Half Year 2019 Postal Savings Bank of China Co Ltd Earnings Call (Chinese, English)
(Bloomberg) -- The promise of artificial intelligence has yet to translate into big business. Now Kai-Fu Lee, a prominent venture capitalist in China and founder of Sinovation Ventures, says his firm’s new startup should be able to reach $100 million in revenue next year and go public the year after.AInnovation, established in March 2018, develops artificial intelligence products for companies in industries such as retail, manufacturing, and finance. Its customers include Mars Inc., Carlsberg A/S, Nestle SA, Foxconn Technology Group, China Everbright Bank Co. and Postal Savings Bank of China Co.Chief Executive Officer Hocking Xu, a veteran of International Business Machines Corp. and SAP SE, has hired staff that work with traditional companies to figure out how to take advantage of AI in their operations. AInnovation is on track to hit $100 million in revenue within two years of its founding, the fastest pace yet for such a startup, Lee said.“We took the approach of ‘Let’s take some of the best business people and let’s target the industries which need AI the most’,” he said.Lee figures AInnovation will be able to go public in less than two years at a valuation of $1 billion to $2 billion. The firm has raised about $70 million so far from Sinovation, CICC ALPHA and Chengwei Capital. Since the company was funded with yuan, it would most likely list domestically, either on China’s new NASDAQ-like Star market, or on the country’s ChiNext.For retail companies, AInnovation sells products including a smart vending machine that opens with facial recognition and software that monitors retail shelves with image recognition. It’s created computer vision technology that detects defects on the production line for manufacturers and underwriting software and natural language processing technology for financial firms. There’s a large market in particular for technology to catch flaws early in the manufacturing process, said Jeffrey Ding, a researcher with Oxford’s Center for the Governance of AI. That effort “aligns with the Chinese government’s priorities to upgrade smart manufacturing capabilities to compete with countries like Germany and Switzerland,” he said in an email.The former president of Google China, Kai-Fu Lee founded Sinovation Ventures in 2009. It manages more than $2 billion across seven funds in U.S. and Chinese currencies. It holds shares in more than 300 companies, most of which are in China. Its investments include autonomous driving company Momenta, consumer AI chip firm Horizon Robotics Inc. and bitcoin mining and AI chip company Bitmain Technologies Ltd.In artificial intelligence, “we’re still at a very early stage in the commercialization,” Lee said. “We’re still at the equivalent of early internet portals, back when everybody was using Yahoo and there wasn’t even a Google, Amazon, or Facebook.”Global economic ructions, however, may present short-term challenges. Venture deals in China have been plummeting as investors pull back amid escalating trade tensions and slowing economic growth. The value of investments in the country tumbled 77% to $9.4 billion in the second quarter from a year earlier.“In an economy that’s slowing down, everything slows, including venture capital. There will definitely be a shakeout,” Lee said. “The positive side is that if the economy is challenging, and valuations are down, it’s a good time for us to go shopping.”Sinovation was one of the first Chinese venture capital firms with a presence in the U.S. With the trade war and the Trump administration’s tighter scrutiny of foreign investments, the firm has scaled back investments and no longer has an office in the U.S., Lee said, adding that investments in America have always been a small fraction of its overall investments.“In the long term, it’s a pity if we have to cause a total separation of two countries because one could argue that AI got to where it got because the whole world has been able to work together.”(Updates with analyst’s comment in the 9th paragraph)To contact the reporter on this story: Selina Wang in China at firstname.lastname@example.orgTo contact the editors responsible for this story: Jillian Ward at email@example.com, Peter Elstrom, Colum MurphyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Postal Savings Bank of China Co., Ltd. (HKG:1658) saw significant share price movement during recent months on the...
Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of Postal Savings Bank of China Co., Ltd. Hong Kong, May 11, 2019 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Postal Savings Bank of China Co., Ltd. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future.
May 8 (Reuters) - Postal Savings Bank of China Co Ltd : * POSTAL SAVINGS BANK OF CHINA CO LTD ANNOUNCES APPROVAL OF QUALIFICATIONS OF CHAIRMAN OF CO BY CBIRC * CBIRC APPROVED QUALIFICATIONS OF ZHANG JINLIANG ...
* Hang Seng index up 0.83 pct HSCE rises 0.13 pct HSI financial sub-index 1.3 pct higher; property up 0.9 pct HONG KONG, May 2 (Reuters) - Hong Kong stocks closed firmer on Thursday as investors cheered ...
April 8 (Reuters) - Postal Savings Bank of China Co Ltd : * CONSIDERED AND APPROVED PROPOSAL ON ELECTION OF ZHANG JINLIANG AS A NON-EXECUTIVE DIRECTOR OF BANK * BANK CONSIDERED AND UNANIMOUSLY APPROVED ...
Want to participate in a research study? Help shape the future of investing tools and earn a $60 gift card! In December 2018, Postal Savings Bank of China Co., Ltd. (HKG:1658) announced its most recent earnings update, which rev...
Want to participate in a short research study? Help shape the future of investing tools and receive a $20 prize! A sizeable part of portfolio returns can be produced byRead More...
Since Postal Savings Bank of China Co., Ltd. (HKG:1658) released its earnings in September 2018, the consensus outlook from analysts appear somewhat bearish, with profits predicted to rise by 9.8% Read More...
Jan 4 (Reuters) - Postal Savings Bank of China Co Ltd : * LYU JIAJIN RESIGNED FROM HIS POSITIONS AS EXECUTIVE DIRECTOR & PRESIDENT * ZHANG XUEWEN ELECTED TO PERFORM DUTIES ON BEHALF OF CHAIRMAN, PRESIDENT ...
Improving credit quality as a result of post-recession recovery has led to a strong growth environment for financial institutions. Large banks such as Postal Savings Bank of China Co., Ltd. Read More...