Huijin A shares to the investors may be placing equivalent banking stocks

In the first half of this year, Bank of America to 2.42 Hong Kong dollar to the price of the Central Huijin Investment Bank bought 6.0 billion shares H shares, had stirred up great controversy in the market.  "On the Construction Bank sale," also in the market over a long time, not only China Construction Bank, one of Huijin itself down.  The final outcome of the dispute or nothing.

 Today, Bank of America purchase H shares of the Bank and the sequel.  November 17, China Construction Bank received a notice of Bank of America, Bank of America and will be based on Huijin Company in June 17, 2005 signed the "Agreement of shares and options to subscribe" to exercise the call option from Huijin Company to purchase H shares 19,580,000,000 Shares and plans to November 30, 2008 prior to the completion of the delivery-related shares.  It is reported that the Bank of America the right price line is based on "the most recent audited net assets per share of 1.2 times" and "H share IPO price of 1.0712 times," the principle is higher.  Bank Sept. 30, 2008 audited net asset per share was 2.05 yuan, the Bank of America the right to the line for the price of 2.46 yuan, about 2.80 Hong Kong dollar.  Nov. 17 Construction Bank H shares closed at 4.11 Hong Kong dollars, Bank of America than the exercise price higher than the 1.31 Hong Kong dollars, Bank of America to count so the trip will bring the right to 25.7 billion Hong Kong dollar proceeds of the book.

 I have no intention to join the "sale of CCB" in the debate, 5, 6, 7 months of this year because of that big argument evolved into the final experts, academics, officials of the sale of condemnation.  Here, I have to accept Securities that it is also "no CCB sale".

 The United States subscription Huijin Bank shares 19,580,000,000 Construction Bank H shares, part of the solution to the troubled A-share market the size of the issue, with the reference.  Huijin is about to shares held by banks (including the Construction Bank, Bank of China, ICBC) to the A shares placing part of investors, and its placement price Huijin transferred to Bank of America the same price, or the same method to determine the placement price.  Moreover, after Huijin 3 of the shares held by banks to reduce, can take such a placement.  On a wider scale, after the reduction of non-small, in particular the central level, the reduction of major state-owned enterprises can adopt a similar approach.

 Let Huijin A shares to investors in banking stocks equivalent placement is feasible.  First of all, this approach does not allow Huijin sale, or even profitable.  Since the Bank of America to the transfer of non-existent problem of sale, the same price (or the same price method) to domestic investors placing, then there is no more a question of the sale.

 Second, let Huijin A shares to investors in banking stocks placement does not change the majority shareholder of state-owned banks holding status.  Workers to conduct cases, including the Ministry of Finance and Huijin, the largest state-owned shareholding of up to 236,000,000,000 shares, representing a total capital ratio of the bank as much as 70 percent, even to the A shares placing stock investors 10:10, and did not shake Holding the majority shareholder of state-owned status.

 Not only that, through Huijin A shares to investors in banking stocks equivalent to placing a way to resolve the size of a non-issue to explore new channels.