China Merchants Bank Planning $5.7B Share Sale

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Aug. 26 (Bloomberg) –- Bloomberg's Mia Saini reports on what bank officials are going to do to sell the shares. She speaks with Rishaad Salamat on Bloomberg Television's "Asia Edge." (Source: Bloomberg)

We are getting you some headlines from the road, as it were.

A share sale for the roadshow, it could be the world's second- largest this year.

We have been having a look at some -- at what some of these top executives have been doing.

The second-largest to the tune of $5.7 billion, they can translate this into dollars.

What i can tell you from the various executives i have been speaking to, it should help capital needs over the next five years, granted there are -- no movements with the chinese finance policy.

1.4%. he also goes on to say that the strategy is increasing loans to small firms, and to do that, you need to have more cash.

That is one of the reasons they are doing it.

Also, you need to think about when they think about expanding overseas, you need to have significant capital consumption on hand.

We also heard from the president who said that the bank is expected to speed up their branch network.

While the think about looking abroad and while they think about expanding their branches, the bank says they will plan to add some 20 outlets in the first half of this year.

This goes back to the fact that their core strategies to really flood the shortfall.

That is where you see them step in with this sure cell -- share sale.

Let's hear what he had to say about the balance sheet.

When he talked about npl s, he wanted to drive in the thing that all of these banks are faced with a rising npl.

You have low demand in terms of lending.

You also have bad assets under balance sheet.

That is also emanating from what the ceo was saying.

He says the bad loans are going to increase for the second half of this year, although he said mildly, but bottom line is they are going to increase -- he also said the ones on their balance sheets are closer to the region and various asia's -- regions.

The vice president says that this is going to be a challenge, not just for -- not just for their bank, but for others.

This text has been automatically generated. It may not be 100% accurate.


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