As the nation's second largest lender makes final preparations to raise as much as 2.5 billion-dollars, Bank of China has set its domestic stock sale offering at 3.05-3.15 yuan per share.

A list of top companies -- China Life, PICC, Huaneng Group, Shenhua Group, Baosteel Group, CNOOC, Chalco, China Southern Power Grid -- will account for 20 percent of the total shares issued to domestic investors.

At the 3.05-3.15 yuan price, the stock would have a price earnings ratio -- a conventional measure for valuing shares -- of between 24 and 24.77 times projected 2006 earnings.

The sale in Shanghai effectively completes the government's bid to clean up the Bank of China's debt-laden books and list it on overeseas and domestic markets ahead of major liberalisation of the banking sector.

By M. Sese
http://realestatepress.org