Editorial Summary

Shares of Shanghai Pudong Development Bank (600000.SH) fell 5.98 percent to close at RMB43.23 on the Shanghai Stock Exchange on Thursday, following yesterday's rumors that the bank plans to raise RMB40 billion by issuing one billion new shares. However, the bank might reduce the issuance by up to 25 percent to between RMB30 and RMB35 billion, reports Sina quoting an unnamed executive. The share issue will increase the bank's capital to deal with its fast-growing loan business, said the report. The report also said Guotai Junan Securities, Citic Securities (600030.SH) and United Bank of Switzerland (UBS) may be the underwriters of the issue The bank currently has no intentions to acquire small, regional banks, according to the report.

Ping An Insurance (601318.SH; 2318.HK) may raise a total of RMB120 billion through the issue of RMB80 billion in new shares and RMB40 billion worth of convertible debt, reports China Business News (CBN) quoting an unnamed insider on Thursday. The insurer plans to spend the money on acquisitions of fast-growing related companies with an internal rate of return of at least 15 percent. Shares of Ping An fell 2.58 percent to close at RMB72.52 on Thursday in Shanghai. On January 21, the insurer announced plans to issue up to 1.2 billion A-shares, with analysts estimating would raise RMB160 billion based on Ping An's share price at that time. Ping An's shares promptly dropped 10 percent after the previous reports.