NEWS
China’s NCSSF to increase stake in CCB
29 August 2012
Category:
News, Asia, China
By Hui Ching Hoo
China’s National Council for Social Security Fund (NCSSF) has pledged 15 billion yuan (US$2.3 billion) in non-public A-share and H-share offerings for China Communications Bank (CCB).
The NCSSF said in a statement on Saturday (August 25) that it subscribed to 1.87 billion A-shares of CCB for 8.54 billion yuan, at 4.55 yuan per share. It also subscribed to 1.41 billion H-shares for HK$7.9 billion (US$10.1 billion).
Upon completion of the purchase, the NCSSF’s stake in CCB will increase from 11.36% to 13.88%. The NCSSF said the pension fund can benefit from the stable long-term development of CCB.
Separately, the NCSSF significantly repositioned its A-share holdings in the second quarter. It offloaded the shares of 49 companies from automobile and medical sectors, including SAIC Motor and Shinva Medical. Meanwhile, it subscribed 65 new shares from electronic and chemical sectors such as Jiangsu Yuxing Film Technology, according to a report from Chongqing Daily on Wednesday (August 29).
The NCSSF currently has the holdings for over 10% of total A-share listed companies.
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