M & A speculation in the banking sector privatization of banks hard

China Industrial and Commercial Bank of China (1398) confirmed that ICBC will be (349), after privatization, the concept of triggering the market fry for another bank merger, so that small and medium banks in Hong Kong stocks surge further, including Wing Hang Bank (302) rose more than 8 percent yesterday. And BOC Hong Kong (2388) increased 2 percent, the cumulative increase since the month reached into more. Analysts believe that, although investors speculated the Bank of China (3988), or will the privatization of Bank of China, I believe that is unlikely.

ICBC rose plate privatization to stimulate the Deutsche Bank report noted that the privatization of ICBC ICBC Asia will make the latter have more room for growth and are not subject to restrictions on the lower level of capital ratios. ICBC is also beneficial in the RMB business with the huge growth opportunities. Report refers to "ICBC is interested to buy other banks in Hong Kong is the next logical problem."

ICBC Asia to be privatized by the news, the market fry concept of bank mergers and acquisitions, including Wing Hang up another 8.3 percent yesterday, two hexagonal close at 86 yuan, after the suspension from the ICBC, the cumulative increase in Wing Hang More than one-six. Dah Sing Bank (2356) and Dah Sing Financial (440) rose 5.92 percent and 3.85 percent, Bank of East Asia (023) and Chong Hing Bank (1111) also rose by 4% Point on July 5 and 4.1 percent.

BOC Hong Kong has continued to rise, closing yesterday, the second angle of 20 yuan, up 2 percent, since the advent Since July, the cumulative increase of more than one into three, if the lowest 17 yuan a month, compared Pentagon, the cumulative increases as much as half a percent.

Managing Director of China Merchants Securities investment bank is satisfied that the warm days, the privatization of ICBC Asia, news, or the impact of BOC Hong Kong rose slightly, but the two lines are different in nature, the opportunities for privatization soon BOC Hong Kong is not high, because the relative size of ICBC BOC Hong Kong Asia is big, a lot of money to the privatization of the amount involved in the Mainland banks have the financing is to strengthen the capital adequacy ratio, Bank of China Bank of China will not rashly use of funds will be privatized. Meanwhile, the BOC brand in Hong Kong more independent, market share, as the Bank for International Development's flagship.

BOC Hong Kong has good stock performance, I believe that as the RMB clearing bank with its relevant, because the renminbi business potential. The Bank will inject the assets of the Bank of China or other arrangements, so that BOC RMB business in a greater scale of development, temperature and day is also satisfied that the listed companies as Bank of China, Bank of China can not be free to inject assets.

27.7 yuan per share, a price premium of material into the other two, many securities firms report that the privatization of ICBC ICBC Asia, the practice of appropriate, will be given greater synergies, estimated a price would be between ICBC Asia's closing transaction half times that range from a half times. Of which JP Morgan estimates that the bank or will be 27 yuan per share, seven corner to privatize ICBC Asia, equivalent to ICBC Asia market account rates twice more before the suspension ICBC Asia closing price of a two percent premium.

Mount pass that after the privatization of ICBC ICBC future should not worry when injected to maintain the liquidity of shares of ICBC Asia's problems; the same time, if the bank acquisitions of local financial institutions, to the merger compared with ICBC easily without fear of ICBC Asia's problems of minority shareholders.