Thursday, July 15, 2010

Subdued AgBank debut casts doubt over fundraisings

By Samuel Shen and Jason Subler

SHANGHAI (Reuters) - The lackluster Shanghai debut of Agricultural Bank of China's (Shanghai:601288.SS - News) $22 billion IPO underscores the challenges ahead for China's markets, as other big banks look to tap investors for billions of dollars in funds.

AgBank's debut caps off years of planning and preparation, completing its transformation from technical insolvency to a sprawling giant with assets of around $1.2 trillion and a customer base of 320 million -- larger than the population of the United States.

It comes against a less-than-ideal backdrop of a weak stock market, questions over economic growth and rival banks returning to capital markets to supplement their coffers after a lending spree last year.

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