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ABC Went Through &Nbsp Smoothly; Investors Were Concerned About Loans.

2010/6/10 15:34:00 36

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The SFC issued a notice on the afternoon of 9, China

Agricultural Bank

Limited by Share Ltd (first) was approved.

Underwriters insiders say whether the final price will be finalized or not.

"There will be no problem with the Agricultural Bank, but after the listing of the prospectus, foreign investors will have higher loans to the Agricultural Bank of China, and some doubts are bound to lower the price of the bank."

Many industry analysts admitted.

According to the Agricultural Bank's prospectus, as of the end of 2009, the bank paid 324 billion 800 million yuan in loans and accounted for 7.85% of the total loans, which was higher than the average of the other three banks.

At the same time, the bank's non-performing loan ratio is 2.91%, which is also higher than the listed banks.

"Concern category"

loan

In the case of economic downturn or regulatory policy changes, it is likely to turn bad.

Some industry analysts believe that ABC did not disclose details of its own local financing platform in the prospectus, and the strong attitude of the CBRC to the provision of local financing platform has increased investor's misgivings.

Early acceptance

New century

People familiar with the weekly press report also expressed the same concern: "if the price of Agricultural Bank is priced at 1.3 times to 1.5 times the market rate, it will bring too many suspicions and bargaining chips to international investors, saying that Chinese banks can accept such a low price financing, saying that China's economy and China's banking industry have problems."

He therefore suggested that AgBank should be "flexible and postponed".

For example, we can make use of the policy issued within 6 months after applying for listing, wait for the improvement of market conditions, and expand the issuing scale of A shares, so that more domestic investors can benefit from it.

ABC's prospectus shows that as of December 31, 2009, the non-performing loan ratio of our government financing platform loans was lower than that of the whole bank.

However, the report issued by the State Audit Office also suggests that the bank has a weak link in management and management, and some of the business is at risk.

These include: there are weak links in the loan management of government financing platform; some agricultural loans are not directly used for "agriculture, rural areas and farmers"; there are loopholes in basic management and risk control.

According to the issue of Agricultural Bank's listing window, close to the Central Huijin Company (hereinafter referred to as Huijin) and many sources of the Ministry of Finance revealed that the two major shareholders of ABC have expressed different views on AgBank's rush to be listed on different occasions.

Huijin high level speech: "do not need to hurry?" another major shareholder of the Ministry of finance also said: "we can postpone the listing."

However, the two party shareholders indicated that the decision to be listed was in accordance with the relevant arrangements.

On the day of the Agricultural Bank's meeting, financial stocks rose sharply in the afternoon without warning, leading to a collective red market rally.

"This coincidence makes investors imaginative, hoping to reduce pressure on agricultural banks in the inquiry."

An underwriter insider admitted.