Postal Savings Bank of China Eyes Mainland IPO to Replenish Funds
Xu Wei
/SOURCE : yicai
Postal Savings Bank of China Eyes Mainland IPO to Replenish Funds

(Yicai Global) March 29 --  Hong Kong-listed Postal Savings Bank of China may issue new shares on  China's mainland, its newly appointed chief said in his first public  appearance in the role. 

Postal Savings  Bank of China will actively pursue an initial public offering on the  mainland to improve its governance and to set up a long-term mechanism  to replenish capital, the 21st Century Business Herald reported, citing  Zhang Jinliang. Zhang was nominated for a three-year tenure as a  non-executive director on Feb. 21. Before that, the firm ran for seven  months without a board leader. 

The listing could  effectively supplement tier 1 capital, the new chief said. The  Beijing-based lender's core tier 1 capital adequacy ratio increased to  almost 10 from below 9 percent, according to its earnings report for  2018. This was 1 percentage point less than Chinese commercial banks'  average.

The lender differs from  other commercial banks in terms of its customer base. The bank serves  particularly small and medium-sized companies in rural China. Rural  areas are like vast blue oceans where residents' disposable income  continues to rise, Zhang said. 

Postal Savings Bank of China will  increase its investment in science and technology, the chairman said,  adding that last year, such investment reached nearly 3 percent of the  bank's revenue.

The lender's capital  adequacy ratio advanced to 13.7 percent from 12.5 percent in 2018,  according to the earnings report. This, however, was 0.5 percentage  point less than the sector's average.

The bank's stock [HKG: 1658] has stayed flat today at HKD4.51 (USD0.60).  

Founded in 2007, Postal Savings Bank of China has 32,000 outlets and 576 million customers.

Editor: Emmi Laine 

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Keywords: Postal Savings Bank of China , Profit , Zhang Jinliang