China's Zheshang, Bank of Tianjin set for flat open in Hong Kong debut

[HONG KONG] Shares of two mid-sized Chinese lenders were set to open flat on their Hong Kong debut on Wednesday after they raised a combined US$2.6 billion last week through initial public offerings (IPOs) in the face of tepid investor demand.

China Zheshang Bank Co Ltd was indicated to open at HK$3.96 compared with the HK$3.96 IPO price, while Bank of Tianjin Co Ltd was indicated to start at HK$7.39 versus offer price of HK$7.39. The benchmark Hang Seng index was indicated to open 0.9 per cent up.

Zheshang Bank's IPO raised about US$1.7 billion and Bank of Tianjin's IPO another US$950 million, with both deals pricing near the bottom of expectations.

REUTERS