BoCom first-half profit jumps 42 percent

BANK of Communications (BoCom), the country’s fifth-largest lender, posted a 42 percent rise in first-half earnings Thursday, in line with analysts expectations and driven by a surge in lending and fee-based income.

Bank of Communications, which is 18.6 percent owned by HSBC Holding, earned 8.56 billion yuan (US$1.13 billion) in the first half, compared with 6.03 billion yuan in the same period last year. The bank earned 4.79 billion yuan in the second quarter ended June, versus 3.13 billion yuan a year ago.

PetroChina eyes new refinery

PETROCHINA, China’s top oil and gas producer, plans to build its second refinery in southern China, Xinhua said, quoting a company official.

The planned plant, which would have capacity of more than 200,000 barrels per day (bpd), will be located in Zhuhai in Guangdong Province, neighboring Macao, Xinhua said Wednesday. The report quoted the company official as saying “there will be no problem getting approval from the State.”

Chongqing bank plans A-share IPO

CHONGQING City Commercial Bank, a small lender in western China, tapped Goldman Sachs’ mainland joint venture to sponsor a domestic initial public offering (IPO) worth up to 5 billion yuan (US$658 million), sources familiar with the deal said.

The A-share IPO is expected to take place by the end of this year, the sources said. Chongqing bank scrapped plans earlier this year for a Hong Kong listing after a deal to sell a 7.99 percent stake to U.S. private equity firm the Carlyle Group fell through.

Everbright bank to get capital infusion

CHINA Everbright Bank Co. said it’s getting a financial bailout by the Central Government to meet minimum capital requirements and attract overseas investors to its initial public offering (IPO).

Central Huijin Investment Co. will pay 20 billion yuan (US$2.6 billion) to buy new Everbright shares at a nominal price of 1 yuan per share, the Beijing-based bank said Thursday. Huijin’s investment merely goes part of the way to replenish the capital-adequacy ratio of China’s eighth-largest bank by assets, at 4.65 percent according to its most recent annual report in 2003.