Market Report – China IPO Eyed

In today’s market report… gains by regional share markets stalled Thursday, with a variety of factors as well as profit-taking weighing on investors.

Agricultural Bank of China, or AgBank, is the last of China’s four big state banks to go public. It’s now selling a 15 percent stake–through a dual listing in Hong Kong and Shanghai next month.

AgBank is seeking to raise more than $23 billion in the world’s biggest initial public offering this year. The issue is expected to stretch market liquidity, divert money away from the stocks of rival banks, and put other big listings on hold in a mainland market that has dropped more than 20 percent since the start of the year.

Analysts say sentiment toward banks has been weak, given economic uncertainty and concerns over asset quality.

Meanwhile, China’s top state-run newspaper on Thursday said workers‘ incomes had to be raised to protect stability and promote domestic spending, adding to signs that Beijing is worried about discontented rural migrants.

Foto: NTDTV