(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