Pudong Development Bank gets nod for new share sales

Shanghai Pudong Development Bank Co<600000>, a second-tier Chinese lender, plans to raise a maximum of RMB 20 billion from selling new shares in domestic market, company president Ji Xiaohui said on Wednesday.

The fund-raising plan which involves sales of up to 800 million new shares has gained support from big shareholders who will not reduce their stakes, Ji Xiaohui, Mr Ji said in a shareholders meeting in Shanghai.

According to the latest news, more than 89.79% of its shareholders voted in favor of the plan. There were a total of 1,845 shareholders or shareholder representatives that attended the crucial meeting, holding about 3.299 billion shares, accounted for 75.762% of the company's total shares.

Market sources reported on Feb. 20 that the bank planned to issue about one billion new shares, with expectation to raise as much as RMB 40 billion. Analysts noted that the bank cut the issuance size dramatically due to the recent plummeting stock prices.