China Merchants Bank to sell discount shares to staff
(14 April 2015 – China) China Merchants Bank is planning to sell new shares to its employees at less than market price, expecting to raise as much as RMB6 billion (A$1262 million).
A motivational reward common at global financial companies will also be put in place according to a statement.
The statement by the bank to the Shanghai Stock Exchange on 10 April said China Merchants will sell as many as 434.8 million A-shares to employees at RMB13.8 each, a 12 percent discount to the stock’s closing price of RMB15.66.
The program will improve mid-to-long term incentives, China Merchants said. The plan is subject to approval by regulators.
The Shenzhen-based bank will terminate its existing H-share appreciation rights incentive program, according to a separate filing to the Hong Kong stock exchange.
Last November China Minsheng Banking Corp became the nation’s first lender to offer such incentives.
Chinese banks have pledged to change their ownership patterns to meet a central government call for financial restructuring.
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