The China Merchants Bank, now listed on Shanghai Stock Exchange (SH 600036), has announced to set its H-share issuance price between 7.3 and 8.55 Hong Kong dollars.

The Bank, preparing for its initial public offering (IPO) on the Hong Kong market, will start the international road show in Hong Kong next Monday.

According to this issuance price, the bank will probably raise 2.41 billion U.S. dollars on the Hong Kong market.

The bank estimated in a latest report that the net profit in 2006 will exceed 5.5 billion yuan (690 million U.S. dollars).

The share price of the heavy weighted China Merchants Bank Co.

Ltd. on the Shanghai market has hit a new high in the past month due to investors' expectation of a high H-share issuance price.

Last month, China's Banking Regulatory Commission approved the China Merchants Bank to buy overseas financial investment products on behalf of the Chinese customers.

Source: Xinhua