Pudong Bank gets green light from shareholders for issue plan

by Richard Kilner

Story link: Pudong Bank gets green light from shareholders for issue plan

The contentious plan of Shanghai Pudong Development Bank to sell extra shares has been given the green light by shareholders, though it has yet to receive regulatory approval.

Since early 2008 the Shanghai Composite Index has slumped by almost a quarter in value, causing the securities regulator to adopt a more cautious approach.

Yesterday an anonymous insider asserted that the China Securities Regulatory Commission will ask for further details of the share offering from the bank’s leaders, including Fu Jianhua and Ji Xiaohui.

Earlier in the week firms were instructed by the regulator not to issue overly large additional share issues, that could undermine the stock market.

The warning has been seen as an effort by the regulator to reinstill confidence in the market.

It is unknown at present whether the Pudong Bank will be granted approval by the regulator.

Shareholders gave their backing to the plan to issue 1bn extra shares late on Tuesday.