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Strategies & Market Trends : China Warehouse- More Than Crockery -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (1374)	11/12/2003 1:23:54 PM
From: RealMuLan	Read Replies (1) \| Respond to of 6370

Pudong Development shares fall on bond issue By Justine Lau in Hong Kong Published: November 12 2003 10:33 \| Last Updated: November 12 2003 10:33 Shares of Shanghai Pudong Development Bank, China's second largest listed bank, fell to a 21-month low on Wednesday after the lender announced a plan to launch Rmb6bn ($725m) of convertible bonds. The bank, in which Citigroup has a 4.62 per cent stake, said it aimed to issue the five-year bonds to help maintain its capital levels above state requirements and finance future expansion. However, investors sold shares on fear that the bonds, once converted to shares, would dilute its earnings. The plunge in Pudong Development's shares mirrored the fate of China Merchants Bank, the country's largest publicly traded bank, whose shares have fallen nearly 12 per cent since the end of August when it unveiled plans to sell Rmb10bn of convertible bonds. Pudong Development also dragged the Shanghai composite index down 1.92 per cent to a year low of 1,317.79 on Wednesday. news.ft.com