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BOC finally, finally IPO'ing

BOC finally, finally IPO’ing

(China) - The Bank of China (BOC) is reportedly now definitely proceeding with its US$4-6 billion listing of its Hong Kong operations in September. The much delayed US listing, caused primarily by a bearish stock market and scandals over improper loans made by the Bank's former chief executive, could now take place six to nine months after its Hong Kong listing.

BOC is China's largest foreign exchange bank and its Hong Kong operation is the second biggest in the territory behind HSBC.

The Bank has promised to strip some US$3.5 billion in non-performing loans (NPLs) out of its Hong Kong business before the listing, removing them to other Bank of China operations. Its NPLs in Hong Kong are roughly 10 percent of total advances, over twice the market's industry average of 4.65 percent.

Goldman Sachs, UBS Warburg and BOC International are all understood to be involved in the initial Hong Kong float.
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