China Everbright Bank needs more institutional buyers

The bank so far has gotten commitments for about one third of its Hong Kong share sale.

A Bloomberg report said Everbright Bank’s underwriters are seeking to sell at least 40 percent of the stock to cornerstone investors. According to the report, such buyers, typically funds, companies or wealthy individuals, are offered guaranteed shares in an offering in exchange for pledges not to sell the stock for a fixed period.

“The Beijing-based bank delayed the sale in June as shares of Chinese lenders declined on concern that loans made to local governments may turn sour,” said the report.

View the report here.