Pudong to raise US$5.6 bn in share sale

Shanghai Pudong Development Bank plans to raise as much as US$5.6 billion by selling up to 1 billion additional A-shares on Chinese stock markets, the Wall Street Journal reported. Pudong shares fell by 10% - the daily limit - on the news. Analysts said that Pudong will most likely use the proceeds of the share sale to boost its capital adequacy ratio and buy stakes in smaller banks. Shanghai-based Pudong has hired UBS, Guotai Junan Securities and Citic Securities to underwrite the deal.