Temasek to buy CCB shares

[eErotica69]

Temasek to buy CCB shares



TEMASEK Holdings will take up Bank of America's entire entitlement in China Construction Bank's rights issue, a spokesman for the Singapore state investor said on Thursday.

CCB, China's No 2 lender, plans to raise up to 61.6 billion yuan (S$11.9 billion) in Asia's biggest rights issue outside Japan to shore up capital after a lending binge in 2009.

BoA, which owns just under 11 per cent of CCB, has been looking for a buyer for its rights entitlement as it could be politically difficult for a bailed-out US bank to pump more money into a Chinese bank, sources have said.

'We confirm we will be taking up BoA's rights entitlement in CCB,' a Temasek spokesman told Reuters.

By taking over BoA's rights, Temasek, which already owns about 6 per cent of CCB, will have to invest an additional US$1.5 billion to US$1.6 billion in the Chinese lender.

CCB is offering 0.7 shares for every 10 existing shares at 3.77 yuan per A-share and HK$4.38 per H-share.

The price of the rights, first proposed in April, is about 43 per cent below CCB's Hong Kong-listed H shares that currently trade around HK$7.72 per share.

BoA, CCB's second-largest shareholder, has already indicated that it is unlikely to participate in the rights, news reports have said. A spokesman for Bank of America declined comment. -- REUTERS


http://www.straitstimes.com/BreakingNews/Singapore/Story/STIStory_601975.html

 

[Lord Brahma]

right long again and burn all our money.

 

[suicidalpap]

Ho Ching buys, sells, buys, sells, buys, sell. A very busy woman.

 

[Lord Brahma]

Ho Ching buys, sells, buys, sells, buys, sell. A very busy woman.

maybe shes doing arbitrage/ hedging?

 

[suicidalpap]

commission very good.

 

[Lord Brahma]

commission very good.

she will say no worries, its from all of us.

 

[eErotica69]

CCB Bank is not those kachang puteh bank!

:p

 

[Coolsaint77]

CCB Bank is not those kachang puteh bank!:p

I recall Citicorp was never a white beans (kacang puteh) bank as well, until the beans were spilled and it became penny stocks... for a while

The huge potential bad loans chalked up by the different provinces - CCB being no.2 probably has a substantial stake. I see another potential hole.

 

[eErotica69]

I recall Citicorp was never a white beans (kacang puteh) bank as well, until the beans were spilled and it became penny stocks... for a while

The huge potential bad loans chalked up by the different provinces - CCB being no.2 probably has a substantial stake. I see another potential hole.

Yes, bro. Risk comes with return. Potential risk means potential returns.

In fact, there is no such thing as riskless investment. Even if one place Fixed Deposits in banks, banks may fail regardless of size (like what you said).

So we all keep money in our biscuit tin under out bed? That is also riskless?

 

[Coolsaint77]

Yes, bro. Risk comes with return. Potential risk means potential returns. In fact, there is no such thing as riskless investment. Even of one place Fixed Deposits in banks, banks may fail regardless of size (like what you said). So we all keep money in our biscuit tin under out bed? That is also riskless?

I'm a moderate risk taker as well. Somehow when Jinx is involved, i feel worried for my CPF money

 

[kukubird58]

hahaha....old fart says Lee HY is a very good in fund management......no wonder he is not in either GIC or Temasick...........

 

[borom]

March 10, 2011, 11:02 AM HKT.
Fitch’s Bold Call on China Banking-System Risk.


Fitch Ratings has developed a strong record on China’s banking sector.... largely to the perspicacious analysis of its lead banks analyst in Beijing, Charlene Chu. She was one of the first observers, back in 2009, to flag how Chinese banks were moving loans off their balance sheets to lightly regulated trust companies to avoid government lending caps.

This past December, she....estimating that China’s banks had used trusts and other tools to blow past the government’s 7.5 trillion yuan ($1.14 trillion) quota for new yuan loans 2010 to the tune of an additional three trillion yuan not recorded on their balance sheets.

Last month, the People’s Bank of China effectively validated Ms. Chu’s analysis, saying that its longstanding measure of new bank lending failed to capture actual credit flows, and that the banks were responsible for creating around 11.5 trillion yuan of new credit last year.

So it turned a few heads Tuesday when an analyst elsewhere at Fitch was quoted saying that China has a 60% probability of experiencing a banking crisis by 2013. Ms. Chu’s analysis had pointed to significant flaws in China’s banking system, but this call put Fitch out there toward the Jim Chanos end of China Cassandra spectrum.

Continue reading on China Real Time.

http://blogs.wsj.com/exchange/2011/03/10/fitch’s-bold-call-on-china-banking-system-risk/

True to form-another long term investment Sillipore style.

 

[miketbh]

CPF money should not be or loan out to be use for share playing.
Daft's fate.

 

[cass888]

I'm a moderate risk taker as well. Somehow when Jinx is involved, i feel worried for my CPF money

You mean your CPF money not already paid over to Kwek Leng Beng or Ng Teng Fong?

 

[tanwahtiu]

Ho Ching buys, sells, buys, sells, buys, sell. A very busy woman.

it is ah loong who buy and sell. As PM he cannot be paid doing it and like any familee biz, husband always make wife jagar the cash machine when he is busy. family biz neber trust outsider take care of cash machine.

 

[middaydog]

firstly, they should rename the bank to China Development Bank or Sino Construction Bank, you see _ CDB or SCB sound much nicer than CCB which reminds me of KNNBCCB

 

[KNNBCCB]

firstly, they should rename the bank to China Development Bank or Sino Construction Bank, you see _ CDB or SCB sound much nicer than CCB which reminds me of KNNBCCB

yes uncle botak ...anything i can do for you ?
Did you dreamt of me last night ?

 

[Cestbon]

Good or bad . We can see the result in next 5 year. Why Temasek dont invest in DBS/OCBC for oversea expansion. At least can have better control by the gov or own people.
Or the local bank have no talent, not competitive in oversea...................

 

[Forvendet]

I'm a moderate risk taker as well. Somehow when Jinx is involved, i feel worried for my CPF money

There's no need to worry about CPF money even if Ho Ching loses it all from Temasek. Temasek is not directly liable for your CPF balance, the government is. If really lost all, all the government needs to do is to tax more from the next generation to repay the last generation.

 

[Equalisation]

...eerrr .... did the purchase came with an accompanying strange pungent smell ....:o