Chinese bank’s existing shares selling may affect investors’ desire to purchase new shares

According to Thomson Reuters, HSBC, Goldman Sachs together with other foreign strategic investors are holding a total of $ 70 billion Chinese banks shares, most of share are allowed to sell this year. Bank of America may sell most of the $ 20 billion shares of China Construction Bank. Temasek still holds $ 14 billion of all kinds of Chinese banking stocks, while the Qatar Investment Authority holds $ 28 billion Agricultural Banks stocks. If Bank of America, Temasek and the Qatar Investment Authority sell all shares, it will be all together $ 36 billion dollars, which would give a negative impact to the stock market and may even trigger a wave of selling. These selling may greatly impact the IPO market considering china’s Guangda Bank and Guangfa Bank is planning an IPO to raise $ 10 billion in the second half year. Massive stock shares selling may greatly inhibit the investors’ desire to buy new shares.

Caijing

Translated and edited by Peng Bo. He is now an editor of m4.cn. Write to him at pb.bloomberg@gmail.com.

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